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After falling in January, GMT Bulls are rising after breaking the resistance level of $0.34. Analysts believe that the bullish trend may continue
Since January 24th, the altcoin market has added $274 Billion in market capitalization. Altcoins have been making massive gains in recent weeks, and finding the next setup could net traders a tidy profit. One such candidate was Stepn (GMT), a Web 3.0 application with a focus on “move to earn.”
GMT Price Suffered In January Due To This
In January, after a significant transfer of coins worth around $3.87 Million to Binance, Web 3 digital coin GMT experienced considerable selling pressure. Spot On Chain, an analytic platform, revealed that the transaction came from an official at STEPN, triggering assumptions of insider knowledge.
The platform also found that address Ox8b3 sent 14.34 Million GMTs to exchange Binance, which could belong to STEPN’s team or investor. Since last July, the wallet that received the transfer has accumulated 131 Million GMTs from unlock events.
During price declines, the address has sent GMT worth around $6.93 Million (25.8 Million tokens) to Binance. Currently, the wallet holds assets worth $27.7 Million (104.5 Million GMT). However, whale transfers such as these can negatively impact the token’s price, as it leads to increased supply and bearish prices.
Start of Panic Selling
Panic-selling from other players might follow, leading to surged volatility and swift price fluctuations. Additionally, large token sales from the project’s officials indicate a bearish picture, possibly expecting price dips in the upcoming sessions.
AMBCrypto examined the token and its on-chain metrics. The mean coin age has been trending higher since November, indicating accumulation despite sizeable drops in this metric in December and January. Over the past six weeks, it has resumed its upward trend. The network growth has also increased, indicating that new addresses were being created and holders continued to amass the token.
The Rise of GMT Price
After the January incident, the GMT token became ‘cheap’ as the whole crypto market was in the bull run. On March 3rd, there was a large spike in dormant circulation, followed by a price correction from $0.33 to $0.29 on March 5th. This was due to a profit booking.
The market-value-to-realized-value (MVRV) ratio has been rising higher over the past three weeks alongside prices, reflecting that holders were at a profit. However, this also means that the price is overvalued.
This has raised some concerns about selling pressure in the form of profit-taking. Despite this, the investors seem confident in the bull market, showing that there is a possibility that the GMT price can cross the major resistance of $0.45.
It was observed that addresses holding the GMT token were analyzed to understand their balance. A surge in buying activity was noticed among the wallets that hold GMT tokens in the range of 1 Million to 100 Million in early March. Concurrently, smaller address balances witnessed a decline in their percentage. Some well-informed whales might be loading up for a rally. Therefore the overall momentum seems bullish in the GMT price.
Summary
GMT digital coin experienced selling pressure after a $3.87 Million transfer to Binance. Panic-selling and volatility is likely to follow. However, whale buying indicates a bullish momentum in GMT’s price. The trend is bullish and investors seem confident. Therefore the token may rise and break the immediate resistance level of $0.45 soon
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
