Good morning everyone, I hope you're all having an amazing day so far! I wanted to do a little technical analysis on our favorite coin over here (STEEM of course). Most of the trading here in the US is done in the BTC pairing so today I will do my TA against this and try to give a dollar comparative. Above I have the 4-hour chart displayed and it indicates that we are attempting to find a price bottom.
The past few months have been a roller coaster ride in the crypto space and STEEM has remained in a relative downtrend for most of this time (see my recent post here). This is mainly because of the fact that STEEM is trading against BTC primarily and not against the USD or another stable coin. Certain economic pressure are ensuring that STEEM continues its downward decent and the market is attempting to find a bottom.
Platform users have already questioned the long-term viability of the project and it shows in the interest levels across the board. Surely Steemit is not dead, but it is not growing necessarily as it should. As always there are tons of factors for this but that is for another day. Right now the attention is on Bitcoin and accumulating as much of it as possible before the next bull run. This means tremendous selling pressure on the STEEM/BTC markets which is clearly reflected in the charts.
On the 1-hour charts which I have drawn the descending wedge formation, we are showing some hope for a bottom to form here soon. The price has already shown some support in the low 2900 Satoshi range (~34 cents) but it could likely break below if BTC begins to show more strength over the next several weeks. Are the changes that Steemit Inc is implementing too little too late or can we save the price of STEEM tokens from self-destruction?
All we need is one big development or project to spark interest again in the STEEM blockchain. There are smaller projects forming almost on a daily basis and this is fantastic for the ecosystem but we are still growing relatively slowly. At three years old we are still struggling to on-board new users because of the integral design of the platform in my opinion- things NEED to be simplified if we are ever going to get serious about mass adoption.
Short Term Price Data:
- Price Support: 2935 Satoshis (0.00002935 BTC) ~34-35 cents USD
- Price Resistance: 3430 Satoshis (0.00003430 BTC) ~40-41 cents USD
Suggested Trades:
- Accumulate in low 30 cents range, if there is a technical break below support*
- Dollar cost average small positions
- Selling STEEM to USD not recommended at these prices
*Never invest more than you are willing to lose and always do your own research before making any investment decisions. I am NOT a financial advisor and this is NOT financial advice- this material is intended for entertainment and informational purposes only. Hit "CTRL + or CTRL -" to change size of chart.
(All pictures are free domain images created by myself with the help of Coinigy.com.)