STEEM Price Analysis – December 8, 2016

ats-david (74)in #steem • 8 years ago

The STEEM price appears to be settling back into its prior trend for now.

After a couple of days of excitement and large price movements, the STEEM price has fallen back to support at ~$0.20, as expected. I mentioned this retreat of the price and the likely target in yesterday’s post. This will be a big test this week with new power downs beginning over the last 24 hours under the new 13-week schedule.

A new power down list was added to steemdb.com by @jesta, so now you can track which users are powering down and how many vests will become available for them to possibly sell on the market. This is valuable information that will help us track STEEM outflows and allow for better price analysis and investment decisions. Please note that this is not a calculation of what will be sold, but only what will be liquid and may be potentially sold. We’ll still need to keep an eye on the markets and pay attention to whether or not these users are actually selling.

On that note – let’s have a look at some charts.

First up is the 7-day and our uptrend lines. Yesterday’s trend line in blue has shifted, as the price was not able to stay above the $0.23 target. So we shift to a new line that is currently being tested as I write this. Notice the drop off in volume since the flurry in trading that topped $1 million over a span of about twelve hours. It’s currently in the $200,000 - $250,000 range.

If we remove the “blow off top” from our chart, we can see the fairly stable rise over the past week and a half since the last small peak. For now, the STEEM price is still trading in that range. Holding $0.20 will be critical to staying in it and maintaining the uptrend. If the STEEM price can’t hold at $0.20, we’ll likely revisit $0.15 again soon.

Looking at the 2-day poloniex chart, we can see the downtrend from the temporary high on December 6th. If the price can at least trade sideways from here and continue to confirm support at $0.20, it’ll be in much better shape once the first power down schedules complete and sellers start looking for exit points. There is a small upward movement on the edge of this chart that breaks the current downtrend line. This is a helpful sideways move and a positive sign for the support line.

The buy/sell orders have evened out a bit on poloniex. We’re still seeing some modest support just under $0.20, with orders totaling ~$27,000. At the $0.15 level, order totals rise to ~$56,000.

There has been a lot to digest this week and there will likely be plenty more swings on the way. Such is crypto...and especially with new cryptocurrencies. As always – if you’re trying to trade short-term, don’t be reckless and never gamble what you cannot afford to lose. I wouldn’t recommend day-trading with STEEM unless you’re a skilled professional. Even then, you can take some pretty big losses.

If you’re new and you insist on trading, start with very small amounts and see how well you can identify patterns and trends. Try not to overcomplicate things.

Good luck out there!