GMT price predictions have turned negative after the rejection of the advance at the 1.66423 resistance confirmed the bearish pennant pattern on the daily chart.
The steep advance seen in the GMT/USDT pair following its listing on Binance faded after the formation of two doji candles and a bearish outside day candle which took out the lows of the doji candles between 28 April and 1 May.
The breakdown of several support levels and last week’s crypto market collapse accentuated the correction. Now it seems that the governance token of the STEPN project could be booking a flight to the downside as the pattern evolves.
A lack of fundamentals or any positive triggers in the crypto gaming niche has left the GMT price predictions vulnerable to technical action on the charts. This means that the bearish pennant could decide the GMT price predictions in the near term. The following outlook presents the two scenarios that could play out on the GMT/USDT pair.
GMT Price Prediction
The rejection and pullback on the day follow three days of unsuccessful tests of the 1.66423 resistance level (30 March low and 15 May high). The price picture is in keeping with the formation of a consolidation area that now constitutes a bearish pennant.
The expected outcome of this pattern is a downside break, followed by a test of the support at 1.09559 (29 March/13 May 2022 lows). If this support breaks down, the 0.83172 support level (17/26 March highs and 12 May lows) form a potential pitstop as the price action seeks completion of the measured move at 0.56433 (20 March 2022 low). The 12 March low at 0.14647 forms an additional target to the south.
On the flip side, a break above 1.66423 invalidates the pennant and opens the door for an advance toward 2.08839 (4/13 April lows in role reversal). However, the 6 April and 9 May highs at 2.70674 constitute an additional barrier to advancing price action above 2.08839. This picture leaves 3.16075 as the other northbound price target for the bulls.
GMT/USDT: Daily Chart
