Stepn’s GMT token has had a spectacular fall from grace in just a few months. After soaring by more than 30,000% recently, the GMT price is now hovering near its all-time low. It has crashed by over 80%, bringing its total market cap to about $547 million, making it the 92nd biggest cryptocurrency in the world.
Stepn’s momentum is fading
Stepn has had a roller-coaster this year as investors have embraced its new category which is known as move-to-earn.
When it was unveiled, the Solana-built token’s price soared to a record high as demand rose. At the time, investors believed that the platform could acquire as millions of users just as SweatCoin has done.
Stepn has had great success as the platform has added thousands of users from around the world. These people use its platform in a bid to both keep fit and make money. They make money in the form of the GMT token, which they can then sell in any exchange.
The GMT price is now crashing as bears react to news that the developers have exited the Chinese market. The developers said that they will stop offering GPS services to users whose location is in China. As such, Chinese people will not be able to earn as they move and even buy NFTs.
The main reason for this action is the rising Chinese regulations on everything to do with cryptocurrencies. Last year, a new law by China barred all cryptocurrencies in the country. Therefore, Chinese users will find it difficult to withdraw their earnings since exchanges are barred from the country.
The country also has strict data storage restrictions for all projects in the country. This explains why many western technology companies like Alphabet and Facebook have minimal presence in China.
GMT price prediction
The four-hour chart shows that the Stepn price has been in a strong bearish trend in the past few weeks. As this happened, the coin formed a bearish pennant pattern, which is usually a sign to sell.
The coin has now moved below the 25-day and 50-day moving averages and is staring at its all-time low. Therefore, the path of the least resistance for Stepn’s price is lower, with the next key support level being at $0.50.