Trading Recommendation:
BUY, price drop is an opportunity to buy, significant risk of STEEM falling if SBD returns to $1
Investment Recommendation:
BUY, expecting to be much higher after the release of communities (coming soon), SMTs, and partner applications
Analyst Commentary:
The STEEM price is down 17.94% verse the USD over the past 24 hours on higher volume ($17,198,500) as Bitcoin is down sharply at $8.8k and the broader market appears to be panic selling many cryptos. STEEM is down significantly verse Bitcoin as Korean trading appears to be leading the panic selling with 50% of the trading volume. The overselling of STEEM and many other cryptos looks like a great buying opportunity once they settle out in the next day or two. New account creation has spiked up even further to 11,000 new accounts created in the past 24 hours as Steemit may be catching up on the new account backlog. The % vested indicator is flat at 71.23% on steady power downs and a break in power ups. Daily active accounts is up to 61,588 accounts executing transactions over the past 24 hours. SBD is at $2.29 on Bittrex which is still very elevated over the peg, receive you rewards in 50% SBD and then use the SBDs to buy STEEM on the exchange. SBD conversions are a waste of money again!
For traders, I believe STEEM is fairly valued around the $3 level even after SBD returns to the $1 peg. If SMTs and communities have the expected impact of broadening the use cases of the STEEM blockchain, STEEM could be fairly valued at $8 or more. On the investor side, I believe we will be significantly higher after communities are released and the account creation problem is solved (the timeline for this is currently unknown). I would power up your rewards and buy STEEM below the $3 level.
Data Credit:
Coinmarketcap.com
Steemd.com
Steemdb.com
Coindesk.com
Disclosure:
The report published above is based on my assessment of the cryptocurrency market. Investors should consider this report as only a single factor in making their investment decision. All investments involve market risk, including possible loss of principal invested. The author is a cryptocurrency investor and while he seeks to provide honest assessments to the best of his ability may have a conflict of interest that could affect the objectivity of this report.
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