The crypto market showed a green day for the first time today. Many cryptos rebounded higher after reaching their respective support prices. STEPN was one of those crypto projects, but also one of the best from the top 100. GMT token soared by more than 30%, reaching $1.60 after a harsh crash that sent prices down to $0.78. Why is GMT up? Did the crypto crash end? Should you jump back to buying cryptos? Not so fast…read on!
What is STEPN Crypto?
GMT Price up by more than 30% – What Happened?
After a crash that lasted several days, today is the first day where prices managed to turn green. GMT prices specifically jumped by more than 30% in the past 24 hours. In figure 1 below, we can clearly see the previous resistance of $0.80 turned into a current support for GMT. When prices started to crash, this price was apparent as the next support.
Plotting the Fibonacci retracement from when the crash started till this strong support line gives the perfect take-profit target for day traders (38.2% retracement level, or the $1.5 price).
Should you Buy GMT token now? Is the Crash over?
The short is a definite no. Rebounds in prices are still part of a downtrend. If you failed to place buy orders, placing one now might be too late, as prices can still continue lower. In figure 2, we show the formation of a descending triangle. This technical formation is usually bearish and signals a slight consolidation before continuing lower. It is very dangerous to place buy orders inside this triangle.
You can only place buy orders in case prices manage to break the upper side of the triangle. Even in this case, placing a stop-loss order is crucial, especially in a bearish crypto market.