Well, I'm no Steem Geek. But it seems to be when you have more sellers than buyers the price is going to fall...

It also seems to me there could be an incentive for large Steem holders to "dump" it and drive the price down in order to buy it back at a reduced price later.

This is done all the time on other markets, it even easier here because of the transparency. You can keep an eye on your fellow stock holder and be sure they are still dumping. The more you dump the lower the price.

Then one day, you buy it all back as fast as possible and try and be the first one to do so :)

JP Morgan was good at that....