A quick look at some STEEM fundamentals
A lot of people are wondering where the STEEM price may be headed. We can’t be certain, but we can certainly look at what may be likely in a relatively short time frame. This is not a comprehensive review and shouldn’t be used for trading strategies.
Looking at the three-month chart, we can see that the down trend was halted at the end of October and heading into early November. This coincided with the announcement of the Steem 0.16.0 hard fork that was recently posted for review.
The low prices briefly dipped below $0.10 on November 3rd (in red), then rose to a high near $0.25 per STEEM on relatively high volume – over $700,000 – on November 5th. The lows at $0.10 were reached again on November 17th and 18th (in red) on very low volume. STEEM prices held a range between $0.10 and $0.13 from November 13th to November 25th (in yellow). After a quick jump to $0.16, the STEEM price traded sideways for a day in the $0.13 to $0.14 range (in black).
Over the past five days, the STEEM price has been in an uptrend, but it is very near breaking that trend line to the downside.
If the STEEM price does not hold that line, it will likely fall back to recent support around $0.14. At this price, there is a fairly large buy wall on the internal market.
If that support line does not hold, we will likely see prices fall back to the $0.10 to $0.12 range where there is stronger support and larger buy orders.
Due to recent patterns and buy orders, I wouldn’t expect prices to fall much below $0.10. However, with the pending hard fork, anything is possible. A big change in the STEEM economics can give us big changes in economic behavior amongst users, traders, and investors. It’s also hard to make predictions with a relatively small amount of data and a relatively short trading history for STEEM.
The most important indicators right now are probably the trend lines, short-term support and resistance, and buy/sell orders. There is more support of STEEM prices right now than there is resistance, so it wouldn’t take much to move the market to new short-term highs. On the other hand, there would need to be renewed, heavy selling to add enough downward pressure on prices in order to break that $0.10 support, which has held up well on two occasions in the past month.
Prices are currently trending down over the past 24 hours, so we’ll need to see how the next 24 hours play out in order to understand where the price may be headed this week.
I am not a professional advice giver and this info should not be used for trading. I would be flattered that you think so highly of my fairly basic analysis, but it would not be prudent to use this for trading with real money.
*Charts are from coinmarketcap.com. Data is current as of 11:30pm EST, November 28th, 2016.
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