Last night, the U.S. stock market crashed, and today, the market started to decline on Saturday, while the price of GMT began to soar, rising by 40%. It is surprising because GMT has been in a significant decline and consolidation for years, so let's discuss why the native token of the FSL ecosystem suddenly surged.
The price of GMT has surged significantly.
The price of GMT began to rise about a month ago, but as the cryptocurrency market faced a downturn, it fell to a low and declined again. It subsequently dropped to this month's low of $0.129 and then started to rebound three days ago. This is due to increased trading activity by investors, which raised its demand. This became even more apparent when the 24-hour trading volume surged by 228.37% to $1.92 billion. Additionally, on-chain reports show that open contracts increased by 63%.
As a result, the price of GMT token has skyrocketed by 40% in the past 24 hours. More importantly, it has risen by 60% in a week, with a market capitalization reaching $621.89 million. Interestingly, there hasn't been a significant reason behind the increase in investor interest, but the number of short liquidations surged in December. While this indicates that traders are betting on the current price increase, they were liquidated as the GMT price rose.
Ultimately, shorts began to repurchase assets and accelerated the price increase of the STEPN token. However, in contrast, cryptocurrency exchanges witnessed an increase in the inflow of GMT tokens. If this inflow or selling continues, it may eventually affect the price of GMT. Additionally, Bitcoin's price may plummet to $60,000, which could impact the performance of the entire cryptocurrency market, including GMT.
Can the upward momentum of GMT be sustained?
After a 60% increase over a week, the GMT chart is beginning to form an inverse head and shoulders pattern, which is a sign of a bullish reversal. Furthermore, the RSI is showing a bullish trend, supporting the previous expectations, but is close to the overbought area, which may change the long-term trend.
However, the Awesome Oscillator is turning bullish as it attempts to break through the zero mean level. This way, a breakthrough of $0.248 could push the STEPN GMT token up to $0.4155.
However, before breaking through, the price may drop to $0.161, but any move down to $0.161 could disrupt the bullish momentum. Careful consideration and strategic trading are needed between these areas.
