STEEM Technical Analysis on Poloniex - Approaching 0.00119774 support zone
I heard many people here on Steemit worring about STEEM price recently, for the simple reason is continuously going down without any signal of trend inversion.
Of course this is true, but a very simple TA would help to really understand what's happening.
I will use Poloniex as it's the bigger STEEM exchange as far as I know (Bittrex has lower volumes for sure).
Here's the chart with 12 hours candles and some indicators I set up for the analysis
Volume and Momentum
You can see on the chart the all time high volume on 29/8 and, after that, the volume remained higher than previous periods, meaning there is not substantial slowing down of transactions.
After this volume peak, also momentum is showing a slight increase, giving the opportunity to the market to gain more volatility and strenght in the future.
Support area
We have support @ 0.00119774 (which is at the very first candle of the chart).
We are approaching the support area (we're currently 8% higher than that).
Everything will happen when this support will be tested, with two possible scenarios.
Bullish scenario
Support is tested and not broken (may be just pierced).
In this scenario, the first possible target would be the 0.00217821 resistance.
Bearish scenario
Support is broken and the price keeps falling down.
We just can't have a clear idea of a possible lower target, in this situation.
Many things may depend on the Fundamental Analysis and users Powering Down.
Conclusions
I would wait a little more before going long, we still need to see the support test next days.
In my personal opinion there will be an uptrend starting soon, for the fundamental reason that the coin is a trusted one and the community behind it is growing and currently healthy.
Agreed, Andrew. While I am powering up, I am waiting for coin strength before making it a larger part of my portfolio
Yeah that makes sense.
I think we are near the uptrend, but in trading we never have any certainty :)
I agree with you @andrew, and i'm waiting too, because steemit is very young. Never give up steemits!!! Thanks to share! (:
But why do you think that 0.00119774 is a support zone? I've checked Buy orders in Poloniex and there is nothing at this price. Looks like it can easily go somewhere to 0.0010:
yeap... I agree. I see it this way. The whales control the market and are cashing out while retaining their investment every week. They will continue to get their weekly paycheck until they decide price has gone too low. They stop selling and hopefully let the market go back up. So at what price will the whales stop selling? It's basically free money so it could go pretty low.
It's the lower peak of the chart, at the very first candle.
Nothing to do with the orderbook BTW