The price increase of GMT has taken a new turn, with the GMT token showing bullish momentum, with a surge in trading volume and open interest.
In a series of surprising events, the price of GMT began to surge, especially today, rising by 40%. This is surprising as the token has been in a significant downtrend and consolidation for years. Interestingly, while the cryptocurrency market is down, this token has risen, capturing the attention of every investor. So, let's discuss why the native token of the FSL ecosystem has suddenly skyrocketed.
GMT technical analysis and upcoming levels
According to expert technical analysis, GMT recently broke out of the consolidation area where whales had accumulated a large amount of tokens. However, despite initially breaking above the area yesterday, GMT failed to maintain its position above it. Nevertheless, strong trader interest and a significant increase in long positions drove GMT up by 55%.
With this significant upward momentum, GMT has reached a key resistance level, where it faced selling pressure and price declines previously. However, this time, the sentiment seems different as traders and long-term holders continue to bet on altcoins, potentially helping it break through the strong barrier around $0.214.
Based on recent price trends, if GMT breaks above the recent resistance and closes above $0.22, it could potentially skyrocket by 85% to the $0.40 mark in the future. However, during the rebound, the barrier at $0.25 may pose a challenge for the altcoin.
GMT open interest skyrocketed by 210%
According to data from the on-chain analysis company Coinglass, GMT open interest surged by 210% in the past 24 hours, indicating that traders have established new positions. Furthermore, Coinglass data reports that long-term holders of GMT tokens, which have recently accumulated during the consolidation phase, seem to be selling them to exchanges.
GMT spot inflows and outflows show that there has been a significant inflow of GMT into exchanges worth $1.02 million, indicating selling pressure, but this inflow is relatively low compared to the amount of tokens accumulated by long-term holders.
Can the price surge of GMT be sustained?
After a 60% increase over the week, the GMT chart is forming an inverse head and shoulders pattern, which is a sign of a bullish reversal. Additionally, the RSI shows a bullish trend, supporting previous expectations, but is nearing the overbought area, which could change the long-term trend.
However, the Awesome Oscillator is turning bullish as it attempts to break through the zero mean level. This means that breaking above $0.248 could push the STEPN GMT token up to $0.4155. However, before that breakout, the price may drop to $0.161, but any move to $0.161 could disrupt the bullish momentum. Careful consideration and strategic trading are needed between these areas.
What should we do?
The token of the FSL ecosystem peaked three and a half years ago, reaching a high of $4.11. However, after years of struggle, the target has deviated by 95%, causing significant losses for long holders. However, the current situation presents an opportunity for immediate profit as the price of GMT continues to rise. Therefore, as capital inflows to cryptocurrency exchanges increase, investors are also preparing to sell. Clear strategic planning and cautious trading are needed to profit, as the STEPN GMT token's chart is forming an inverse head and shoulders pattern. If all goes well, this could push the price up to $0.4155 or even higher.