State of the STEEM Address: Making a Run for $1.40!

Newcomers to the Steemit platform may have noticed that the month of May was a particularly volatile one. We saw the cryptocurrency decisively break above the psychologically critical $1 level, only to fall back below the key threshold.

Now, on the second of June, the Steemit currency is fighting hard, full-"STEEM" ahead! In fact, as I am writing this, STEEM has jumped from the $1.20 level to $1.27. Seemingly, every time I write about the burgeoning cryptocurrency, my technical analysis articles become obsolete upon publishing!

All joking aside, I want to provide my fellow Steemians with a quick overview of what happened last month, as well as what we can expect in the coming weeks ahead.

STEEM Breaks Out!

We saw the first sign of serious intent from STEEM when it broke above $1 in early May. Quickly though, the cryptocurrency fell back into a range around the 75 cent level. From there, STEEM charted a bullish trend channel, with 80 cents representing the ceiling, and 70 cents representing support.

In a matter of days, STEEM broke free of the channel, and made a run for $1.40.

STEEM Breaks Down

Along that magical rally, STEEM encountered initial resistance around the $1.25 mark. The bears came in, and pushed the price down to about $1.14.

However, bullish momentum re-emerged, taking the price just shy of $1.35. Unfortunately, a lack of upside impetus failed to drive STEEM towards $1.40. As a result, the coin broke down when the last bit of bullish support failed.

In retrospect, STEEM had formed the notoriously bearish head-and-shoulders pattern. This usually spells bad news for any publicly-traded asset, and STEEM fell below a buck.

It Looks Bad, Until...

At this point, Steemians are very discouraged. Attempts to re-conquer the $1 level are met with bearish pressure. Further upside attempts are denied, funneling the overall price action into an increasingly tighter range.

For technical analysts, that means one thing -- a bearish flag formation. Similar to the head-and-shoulders, this spells bad news. STEEM was facing more pain.

But then, something incredible happened. Rather than break down the second time, STEEM shot up. We are now firmly above the $1 level, and momentum appears to be stronger than ever!

What to Expect Next

For those that are trading STEEM in the nearer-term, I believe strong resistance is at $1.25. STEEM must not only breach this level, but move considerably higher to give the A-OK. The signs look encouraging so far, but stay vigilant.

The ultimate target for this month is $1.40. If STEEM can settle there and establish support, we are well on our way to $2. Patience is the key.

Well, that's it folks! I hope you're enjoying the magic rally that we're on! And if you like these types of updates and technical analysis, please be sure to follow me @bullishmoney to stay on top of my work and forecasts!