Steem's daily chart.

On 16th August, more than a month ago I shared a target for Steem to be testing the $0.1680 level. I shared about the bearish flag pattern forming and how its breakdown can result in a drastic downward movement in Steem and that is exactly what happened. Check the move closely here:

After this well-satisfied drop of -18%, we haven't dropped to an extremely lower level of $0.1680 yet but it is not away as we are halfway!

The price rather than going up or down to our target, got trapped in a triangular pattern, take a CLOSER LOOK:

3 TIMES SUPPORT LINE HAS GOT TESTED.
5 TIMES RESISTANCE LINE HAS BEEN TESTED.

Due to these many tests and also if you look, the triangle is reaching its ending point. A further move of Steem would be dependent on the breakdown or the breakout of the triangle. We need to wait a few days, probably till this Sunday. Although my target is on the shorter side for Steem, the triangle pattern that has formed can create troubles in that by reversing the trending downward momentum. Let's look at both breakout and breakdown scenarios more precisely which are possible in a week.

Breakout.

The last retest for support and the price would be rallying, breaking the resistance, and then doing a retest. After this all gets done successfully, we will be having a target of $0.2740.

One thing which makes the possibility of a breakout higher than the breakdown is, VOLUME.
I you check the volume of both bullish and bearish days, you would find that bullish days have achieved a much higher and stronger volume than bearish days.

Breakdown.

We expect a successful close below the support line which would leave us with a little more downward movement, later come for a retest and after successfully doing the retest, it will be dropping to our target area of $0.1680.

For the past 5 months, we have been trapped in this rectangle pattern as well therefore, after it does breakout on either side and if it touches its major support level and resistance level of $0.3 and 0.1680 respectively, we would be having a thought of breaking out of this range as well. long way to go there!

What to do right now?

My opinion is let's wait for some days as there will be chances of very less volume in the upcoming days due to reaching the end of consolidation in the triangle."The stronger the consolidation, the bigger and stronger the move."

I anything happens, I would share it as soon as possible with other plans and possibilities for the same.

Problem.

There are many manipulations of the price, the price goes up for some minutes which traps many investors and traders, and after they're trapped, they dump the price back to the original support. Recently there has been a 75%-100% pump for manipulation and it didn't even stay the whole day. In just a few hours everything happens and gets back to normal but this isn't good for the people if anyone is doing leverage for Steem then it is so easy for his position to get liquidated or get squared off.

Steem has a long way to go, it would be good I the number of manipulations gets reduced over time, overall better for the Steem price history and momentum in the long run.

Indicators.

As we are in a larger timeframe, indicators become more reliable in these areas as compared to slower timeframes than this.

"The larger the timeframe, the better the indicator performs"

We will be taking note of 2 of the widely used indicators, MACD & RSI respectively here.

MACD

Just the time I shared my last analysis for Steem, I did share indicators there as well. You could see a circle on the bearish crossover formed, this was shared as it happened and did warn on this that this is a daily timeframe and there are very high chances for this to work out as it should and it did.

Right now, we are in a neutral spot, why?
Although we are in a bullish crossover state if you see, it is not looking that strong to tell us with some confidence that a bullish momentum with a bullish momentum is possible, therefore, uncertain. Including this, the momentum on the zero line is not that strong either.

RSI

Nothing much to talk about RSI as it is not forming any pattern although a triangle is forming I feel it is not worth talking about it. No divergences, nothing. Still, we are below 50 points as of now so a bullish scenario possibility here is kind of hard to expect. As it is below, bearish scenarios in the market of Steem have more possibilities.

---

ALL SCREENSHOTS ARE FROM TRADINGVIEW DESKTOP APP.

---

Thank you everyone for going through the analysis and I hope it provided value.

Have an incredible rest of your day!
SANJAM