Key points:
- The GMT crypto has sold off immensely from its all-time highs.
- The latest decline occurred after the banning of Chinese users.
- So what’s next for the move-to-earn token? Read on to find out.
GMT is the native token for the STEPN move-to-earn blockchain that encourages users to walk to stay fit and earn rewards on the platform. Unlike other fitness applications, users do not have to engage in any fitness activity to earn rewards; all they have to do is keep moving about their daily activities.
Also read: What Is Staking Crypto?
The crypto project debuted in March this year, attracting significant attention from investors that saw its price surge to $4.627. However, the GMT token later fell, erasing all its gains and went deep into negative territory to now trade at $1.1845 at writing (30 May).
The last leg of GMT’s decline was triggered by its announcement that it would ban users from mainland China from using the app in line with government regulations regarding its citizens’ GPS and IP tracking. The move is not surprising given the Chinese government’s tough stance on crypto and Web3.
STEPN announced the ban on Thursday, triggering a 35% selloff in GMT’s price, but the selloff did not last long as GMT rebounded on Friday after printing new all-time highs. Since then, GMT has rallied higher but is yet to recoup all of Thursday’s losses.
It will take a while for the ban’s impact on Chinese users to pass, given that the ban is scheduled to come into effect on 15 July 2022. However, GMT could benefit from a broader rally in the crypto markets, which are showing signs of turning around following the selloff triggered by the TerraLUNA crash.
There’s not much technical data, but we will use what we have. The GMT pice chart below shows the token bounced off the $0.9304 support level on Friday and headed higher. The next resistance level is $1.3311, which would bring the $1.6225 resistance zone into play. A break above $1.6225 would trigger a massive rally to the $2.1233 level.
We could also see the token fall back to the $0.9304, triggering another rally attempt. A break below this level would invalidate the bullish thesis.
*This is not investment advice. Always do your due diligence before making investment decisions.
GMT crypto price chart.
The GMT USD crypto price fell heavily on Thursday but has mounted a strong rebound.
