Hello friends, it is the beginning of the week and today in the morning we are going to put the Ethereum futures aside and we are going to analyze STEEM and understand why the price still remains below $ 0.20 and has been unable to exit the distribution process that has been generated since March 7, 2019.
1D Chart
The capital distribution has manifested itself in a bearish channel pushing the price to $ 0.10 (indicated with the red arrow) at this level and 0.11 (green arrow) is where we can see that the lawsuit has rejoined the game.
1D Chart
This means that there has been no professional intervention in favor of the demand since 2018. Which means that, until the market makers involved in Steem do not generate the partial withdrawal of the offer, the price will be unable to rise.
On March 18 of this year (green arrow) we could see how the professional demand tried to exit the bearish channel by injecting large volume, however, as there was no follow-up of the demand with the real intention of breaking the downward structure, this distribution movement was unable to maintain its strength, bringing with it an imminent stoppage of the volume by the supply, incorporating the price back into the bearish structure of the distribution channel.
1D Chart
Despite these bad signs for those who are waiting for the breakdown of the $ 0.20 level (indicated by the channel's overbought line), it is observed that since November 20, 2019, demand has stopped the decline of new minimums for supply already started to create a growing structure that continues to this day. Which leaves the price in a large contraction formation within the distribution channel.
1D Chart
Steemit needs a true demand that manages to consolidate the price at $ 0.20 and that really intends to generate new highs, there needs to be professional support. If the demand does not achieve this, we could be facing the possibilities of a distributive range for a longer time or a search for the supply to generate new lows below $ 0.10
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Alejandro Aristeguieta
CEO in Aristeguieta Capital.
Investment Firm and Financial Analysis.