StepN’s Green Metaverse Token saw a sharp rise on Friday, ranking it among the best-performing cryptocurrencies.
StepN (GMT) price surged 50%, hitting an intraday high of $0.2275, its highest level since December 9.
This rally comes as Bitcoin and other altcoins like Virtuals Protocol, Fartcoin, Hyperliquid and Raydium also saw double-digit gains.
There is no immediate news to explain this price surge. A likely reason for this increase is the increase in the number of StepN users, which reached 97, its highest level since December 30. However, this figure remains significantly lower than the peak of the previous month.
StepN’s rise comes weeks after the developers expanded their partnership with Adidas, the popular sportswear brand. The two companies have agreed to release 1,200 limited edition sneakers available to NFT holders.
Another plausible explanation for the GMT price surge is the lack of liquidity in the market due to the Christmas holidays. During these periods, it is often easier to handle low-volume cryptocurrencies.
StepN also benefited from interest from South Korean traders. According to CoinMarketCap, the majority of GMT volume was on Upbit, which saw over $311 million in volume on Friday, accounting for 25% of the market share. Binance and Bybit followed with $219 million and $27 million, respectively.
StepN was one of the most popular players in the crypto sector by introducing the concept of “move-to-earn”. Users purchased sneaker NFTs and were rewarded for simple tasks like walking or running. However, like other “to earn” projects, its success was short-lived, with usage dropping rapidly.
GMT Price Analysis
The daily chart shows that GMT price formed a “God” candle on Friday, peaking at $0.2275. This rally took place after the token found significant support along the ascending trendline connecting the lows seen since August last year. It is common for assets to see a sharp rise after touching a crucial support level.
GMT has surpassed the 23.6% Fibonacci retracement level as well as the 50-day moving average. It has also positioned itself at the top of the Murrey Math lines trading range. Therefore, these gains could be limited in the absence of major news that led to this rally. In this case, the token could be expected to retest the strong pivot level around $0.15.
In short, the current price dynamics in the field of cryptocurrencies, and more particularly for StepN, raises questions about the stability and sustainability of “to earn” type projects. As innovation and enthusiasm for NFTs continues to grow, it will be important to carefully monitor the evolution of users and the impact of partnerships on the viability of the tokens. What strategies should be adapted to respond to this fluctuating volatility?
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