STEEM has been consolidating around 4.00 and 4.50 for the past few weeks. Today we have finally seen a price drop below the 4.00 psychological support level to 3.71.
This might just be a temporary breach of the 78% fib level, similar to 1-2 weeks ago, where the price pierced through 4.00 a few times a developed support at the area just below it.
If we do break the support at 3.70, I am expecting a large drop down to 3.00, or in an extreme case the 1.00% fib level at 2.50.
I do not think this will occur though, this drop was most likely due to BTC having a very quick pullback from a high at 11771 to 10858. We should be able to develop support at 3.50 to 3.70 in my opinion.
Lastly, the RSI is very close to being oversold on the 4 hour, if it does become oversold, there is a high chance of a quick snap back to 4.00.
Conclusion: For me to be short-term bullish on STEEM again, it would be ideal to see a break above both the 100/200 EMA at around 4.50-5.00.
Disclaimer: (I am not a financial advisor, do your own due diligence when investing in cryptocurrencies. This is just my speculative opinion.)