GMT Breaks Resistance, Bullish On-Chain Metrics But Bitcoin's Performance Crucial

GMT, the native token of the move-to-earn app Stepn, surged past a key resistance zone, signaling a potential bullish reversal. Metrics indicate strong buying pressure, but sustained gains may depend on Bitcoin's performance. GMT's recent rally of nearly 80% follows a period of consolidation and coincides with positive on-chain indicators, including rising demand, bullish sentiment, and accumulation by large holders.

GMT Breaks Resistance, Metrics Indicate Bullish Health, but Bitcoin's Performance Remains Key

London, March 29th, 2022 - GMT (Green Metaverse Token), the native cryptocurrency of the popular Move-to-Earn (M2E) app Stepn, has successfully broken out of the resistance zone that had previously held back its rally. This breakout suggests that the bulls are regaining control of the market, and it could signal the start of a sustained uptrend for GMT.

Positive On-Chain Metrics

Several key on-chain metrics are reflecting a healthy bullish bias. The Mean Dollar Invested Age (MDIA) metric, which measures the average age of coins in circulation, has been in a downtrend throughout January. This is a bullish sign, as it indicates that old coins are being re-circulated, suggesting rising demand for GMT.

The weighted sentiment is also strongly positive, reflecting the recent gains that the token has seen. The network growth has also ticked higher in the second half of March, indicating that more users are joining the Stepn ecosystem.

The MVRV ratio, which measures the ratio of a token's market capitalization to its realized value, has shot higher alongside prices, reflecting that holders are currently in profit. While this is a positive outcome, it could lead to selling pressure in the form of profit-taking activity shortly.

Examining the Supply Distribution

An analysis of the supply distribution of GMT tokens shows that smaller holders, encompassing up to 100k GMT, saw a downtrend in March. This suggests that they were taking profits as prices rose.

On the other hand, wallets with 100k-10 million of the tokens made up a greater percentage of the supply distribution in the past three weeks. This could indicate possible accumulation from whales, which is often seen as a bullish signal.

Bitcoin's Impact

However, it is important to note that GMT's rally could be heavily influenced by the performance of Bitcoin (BTC), the largest cryptocurrency by market capitalization. In early March, GMT fell by 30% after BTC dropped below $70k and nearly touched $60k.

If BTC continues to trend downwards, it could drag GMT prices down with it. Therefore, the sustainability of GMT's bullish momentum will depend on Bitcoin's ability to stabilize and resume its uptrend.

Conclusion

The breakout of GMT past the resistance zone, coupled with positive on-chain metrics, suggests that the bulls are regaining control of the market. However, the token's performance remains closely tied to the performance of Bitcoin. If BTC can stabilize and resume its uptrend, GMT could continue its upward trajectory.

At the time of writing, GMT prices were trading at $0.406, down from the recent high of $0.445. However, the token remains well above its low of $0.2506 set on March 20th, indicating that the bulls are still in control.