Steem determines how much power we can command in the Steemit economy and if you really think about it, this economy works just like the real world. The whales are the movers and shakers with most of the power and they can choose who they want to allocate their voting rights to just as minnows can but with a much greater influence. However, at the same time a whale cannot exist without the dolphins and minnows just like if everyone on earth was worth a million dollars, a million doesn't really go that far, if at all.
Simply put, the whales are the early adopters and investors who in a sense "built" this system and since they built it, people will come. In order for Steemit to survive, we constantly need more minnows entering the platform and buying into the currency and believing in the long term value. If you believe in the long term value and it's potential, the current price of Steem isn't that expensive. Now I'm not advertising to go and dump your entire life savings into Steem, but a little investment and effort could go a long way.
And then there's the whales who bought into their whale status dumping hundreds of thousands if not a few million into Steemit. Most likely immigrated into this habitat relatively later during the crypto hype bringing their money with them. While whale status seems grand, there's a chance they are back to square one or even underwater. In essence, they are no better off than any minnow because of Steem's current price, so they are doing their best to thrive as well. Interesting how economics always come into play with everything.
So is it a good time to buy some Steem even as the price Steem is on a steady decline?
Looking at the chart, how can anyone make any accurate assessment of the movements. You can argue that a cup and handle formation happened from June 2017 to December 2018 but that is one huge handle. The "handle" essentially is from the low 3's to mid 8's which is abnormal because handles are never that big. I don't expect to see such movements anytime soon but you won't need to have it move that rapidly to make some profits from here.
BUY SELL or HODL
Further downside is possible breaking the lower red channel but I'm hopeful that it'll be more of a fake-out to the downside followed by a pivot retesting the 200 day moving avg in the mid 2's. Another possibility is reaching the low 3's above the red channel, it may consolidate and break back into the red channel forming the right shoulder of the inverted head and shoulder. By then if it price bounces off the lower green channel, we can see possible confirmation of an uptrend. In either case, it'll at least retest the red downward trend-line but has to be sooner rather than later.
FINAL NOTE
One possibility that negates everything is if whales decide to power down at the same time cashing out, we can see prices spiraling down into unappealing territories crashing the Steem market. Even though powering down happens in intervals, it can still shake the market because other will follow. But that's worst case scenario that isn't likely especially since there's still gold in them hills to be mined. Evolution of minnows is crucial!
Disclaimer: All statements and expressions are opinions, and not meant as investment advice. Information provided in this post is not personal investment advice and should be used as informative or entertainment purposes only. Seek guidance from a professional investment advisor or due your own due diligence before trading or investing