STEEM Price Analysis – November 30, 2016
Another quick look at STEEM price action
In my last post on this topic, I pointed out some resistance and support levels from the last three months and offered some insight into what the STEEM price might do over the course of the next few days or the week. Recent price movement has supported what I suggested might happen and the price is trading in a narrowing range on decreasing volume.
On the seven-day chart, we can see that the price temporarily dropped and bounced off of the ~$0.14 price range. It was a very brief dip and confirmed a small level of support at that price. It also set our upward trend line which is now being tested again.
With the range narrowing, we can look to the internal market and see that there aren’t strong buy/sell orders between $0.12 and $0.19, so the market can swing either way – if the external markets are similar.
A quick look at poloniex shows that there is more buying support just below current prices than there is resistance to the upside.
The prices will surely break out of this narrowing range, and if I had to guess, I’d say that it would go up. Do not take this as trading advice. These markets are fickle and can change on a dime, especially with the relatively low volume. I’m just offering an opinion based on rudimentary analysis, so please see the disclaimer below.
Disclaimer: I am not a professional advice giver and this info should not be used for trading. I would be flattered that you think so highly of my fairly basic analysis, but it would not be prudent to use this for trading with real money.
*Charts are from coinmarketcap.com and poloniex and the STEEM internal exchange. Data is current as of 3:10pm EST, November 30th, 2016.
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looks like we will be in this range until after the hard fork .
Yeah - I'm not expecting much movement beyond the $0.12 and $0.18 range until the hard fork goes through and we get an idea of how many users and who'll be powering down.
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I disagree. I think the going rate for brief analyses of crypto prices is somewhere between $40 and $400, per the trending page.
Only the ones that use "to the moon" and "any day now" frequently
Yeah, that's not a bad thing to add to my posts. Maybe I can get them trending every day.
Digital currencies, especially new ones riding the coattails of Bitcoin's larger adoption, will always be volatile. The question is whether you intend to save, or try to game the short-term trading trends.
Gaming the short-term trends is a risky business in established markets, let alone in new crypto markets. If you've got the stomach for it and have money that you're not afraid to lose, it could pay off. Otherwise, I wouldn't suggest it.
I would play for the long-term if you believe in the currency and platform. That has its risks too, but you're less likely to get caught making bad decisions and losing everything. If you're not a trader, don't play the traders' game. They'll win.
Actually, it tends to be quite a bit riskier in established markets, because there are already a considerable number of large players who are competing against you, often with a lower margian and better or more current info.
When internet stock trading became a thing in the mid-90s, there was a relatively short window where the average, well educated individual day-trader could game the short term swings and make a killing, but eventually the big trading companies swooped in and ate most of the equity there.
The same was true of forex in like the mid aughts.
If you're looking to game the short term trends (which yeah, is a super high-risk endeavor) , an emerging crypto market, where you at least have a significant upside potential to coutnerbalance the risk, is precisely where you want to be.
I think these analysis's are fantastic man, keep them up - I devour them!
Thanks. I'll see what I can do to improve them as we go forward. This is just a very basic breakdown. Maybe once a week I'll get a little more in-depth.