In this new Wednesday crypto nugget, we are going to take a look at the GMT cryptocurrency which, after a powerful rise in the first half of 2022, has evolved for several months in a downtrend. However, in 2023, like the rest of the market, the asset had the opportunity to start rising again. Today, we are going to take stock of the situation of the asset by evoking the key levels to watch and the bias to have during the coming months.
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Is the resumption of the weekly pivot a convincing event?
On the weekly time unit, we can see the evolution of GMT in a range with an upper limit at 0.607 dollars and a lower limit at 0.22 dollars. Currently, the price has just reintegrated upwards the pivot zone of the range which is located at 0.3731 dollar. After a powerful rise at the beginning of 2023, the price made a rejection on the upper limit by falling temporarily below the pivot of the range.
The current challenge is to maintain the price above the pivot and succeed in getting rid of the trio of EMA (13/25/32) which gives a good idea of the overall trend on the asset. When you get there, the price will make a strong rebound after the fall. As a result, as long as the price manages to win and preserve this technical confluence, we can opt for a return of the price to the upper limit.
However, if GMT is unable to preserve its range pivot and it bottoms below $0.282, it will most likely revisit its low at $0.22. Indeed, the inability of the price to stay above the pivot will be a powerful move for buyers and will cause the asset to register in a powerful downtrend.
Will GMT be able to take off higher?
Recently, during the passage under the pivot zone, the price reacted in a very interesting way on a technique, an HVN which is located at 0.297/0.324 dollar. Being currently in a major technical zone, everything is in play at the moment since the pivot is in confluence with the Point Of Control of the volume profile. If the GMT manages to maintain its current levels on a daily scale, the price will probably rebound in the direction of 0.475 dollars (red zone) then, in a second step, the two gray zones above.
On the other hand, if the GMT does indeed go back below the pivot zone and there is price acceptance in this zone, then there will be no doubt that the GMT will head towards its recent low point at 0.297/0.324 dollars. In this context, if there is not a second rebound, the price will undoubtedly return to $0.257 which is a technical level where the price reacted during the first weeks of 2023.
Here we are at the end of this analysis of the GMT cryptocurrency. We are facing an asset that is at a key level and will have to hold the drop after the pump to hope for a continuation of the powerful bullish momentum. Of course, nothing is played yet since a passage under the pivot will be a clear invalidation for the buyers and will cause the asset to take a powerful direct downward direction towards the identified levels.
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