Last night, the US stock market crashed, and today, the major indexes started to decline, but the price of GMT began to soar, rising by 40%. This is surprising, as GMT has been in a significant downtrend and consolidation for years. So, let’s discuss why the native token of the FSL ecosystem suddenly surged.
GMT price surged significantly
The price of GMT started to rise about a month ago, but with the downtrend in the cryptocurrency market, it dropped to a low point and fell again. After that, it fell to this month's lowest point of $0.129 and began to recover three days ago. This is due to the increased trading activity of investors, which boosted 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 showed that open contracts increased by 63%.
Thus, the price of the GMT token surged by 40% in the past 24 hours. More importantly, it rose by 60% over the week, reaching a market cap of $621.89 million. Interestingly, there was no significant reason behind the increase in investor interest, but the number of short liquidations surged in December. While this indicates that traders bet on the current price increase, they were liquidated as the GMT price rose.
Ultimately, short sellers began repurchasing 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 could eventually impact the GMT price. Additionally, Bitcoin’s price might plummet to $60,000, which could affect the performance of the entire cryptocurrency market, including GMT.
Can the GMT rally be sustained?
After a 60% increase over the week, the GMT chart is forming an inverted head and shoulders pattern, which is a sign of a bullish reversal. Moreover, the RSI shows a bullish trend, supporting previous expectations, but is approaching 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. In this way, a breakout above $0.248 could push the STEPN GMT token up to $0.4155.
However, before the breakout, the price might drop to $0.161, but any move to $0.161 could disrupt the bullish momentum. Careful consideration and strategic trading are required between these areas.
I am Penny, a long-term coin holder enthusiast. I don’t touch contracts and I don’t do leverage. I earn coins in a bear market and earn USDT in a bull market. If you are also this kind of person, then welcome to follow Penny!
Let’s cross through the bulls and bears together, huddling for warmth, and strive to be a rough-cut leek.