The native tokens of the move-to-earn lifestyle app STEPN surged higher on news of their listing on the US-based Coinbase exchange.
The price of STEPN’s governance token – Green Metaverse Token (GMT) is up nearly 20% and hits over $4 in 24 hours, recording a new ATH at $4.11 on April 28.
Similarly, another STEPN token, called Green Satoshi Token (GST) is up 24% to around $7.9 at press time and also set a new record at $9.03 yesterday. GST is a token used to reward players after they walk or jog with STEPN’s “NFT Sneaker“.
STEPN ecosystem grows
The intraday rallies in the GMT and GST markets were part of a broader uptrend that began in early March 2022. The hype over the growing move-to-earn sector is driving the value of the tokens involved.
In particular, STEPN’s economy is designed to sell NFT sneakers and use the proceeds to buy back, burn GMT. This unique pattern is likely to attract speculators who perceive a lower supply – higher demand structure as an uptrend. GMT has a supply capped at 6 billion.
Meanwhile, GST has an unlimited supply so it should find bullish signals from its underlying use case.
Notably, STEPN players use the token to mint, repair, and upgrade NFT sneakers or even sell them on the app’s marketplace. Therefore, if the number of STEPN users increases, it could lead to players limiting the prospect of GST’s price drop by using it as an in-game currency.
Many gamers have shared screenshots of their STEPN profiles, which show the physical activities and GST rewards they earn after making the claim. On the other hand, leading NFT marketplace OpenSea has added STEPN’s athletic shoe collection, giving STEPN NFT owners a wide range of marketplace options for digital resale of shoes.
The hype about the move-to-earn token is as rampant as last year’s play-to-earn projects Axie Infinity (AXS). Twitter account Wu Blockchain also recently tweeted about another similar project:
“The move-to-earn token FITFI on Avalanche achieved a 50x increase in the price of IDO DAOMaker ($0.0049) after launching on OKX and Bybit on April 26. This offering will release 10% after launch. Same mechanism as STEPN”.
Ascending triangle on GMT price chart
The price of GMT heads towards $4.50 before this week’s close, based on an “ascending triangle” setup on the shorter time frame chart.
An ascending triangle occurs when price merges between the upper horizontal trendline and the lower ascending trendline. This pattern is resolved after the price breaks out in the direction of the previous trend and rises by the maximum distance between the upper and lower trend lines of the triangle.
Interestingly, the upside target of the triangle near $4.50 also coincides with the 1.618 Fib line of the Fibonacci retracement plot drawn from the swing high of $3.82 to the swing low of $2.75.
Descending triangle on the GST price chart
Unlike GMT, GST is showing signs of breakdown as it formed a descending triangle pattern after reaching $7.2.
GST price tends to be lower between the descending upper trendline and the horizontal lower trendline, which is considered a bearish reversal pattern after a strong uptrend. As such, STEPN’s token is now at risk of breaking below the lower trendline of the triangle.
If this happens, the price of GST is at risk of a drop equal to the maximum height of the triangle as measured from the breakdown point, leading to a downside target of $6.