Supply and Demand 🌀 Newb Question?
When the supply is seemingly much higher than the apparent demand, and the chart looks like this;
Why is the price of steem not dropping?
Thanks For Your Attention and Support!
Melech ben Chaya מלך בן חיה, @inphiknit
Because their are apparently no sellers who are willing to sell their Steem for the price that will meet up with the highest buy order.
The sell walls you see could however potentially make it harder for the price of Steem to rise.
So if we saw more volume of both buyers and sellers on the internal exchange, only then would we see a quicker reaction downwards? Thanks for the reply.
It could be just 1 account selling a bunch of steem for much lower prices to make the price drop. I am not quite sure how the prices of the internal market compare to the prices on a exchange though.
Mostly trade Steem on Poloniex and almost never on the internal market. Its an interesting question
I know there is at least 1 bot that sells and buys and seems to hold a given price. Maybe if the bids outpaced the bot, a more natural supply / demand effect would be seen? I dunno...
Never tried the ext. markets. I wonder if the same effect is there too.
Sell walls only stop price increases, they do not drop price. Also, some sell walls can be faked, as well as buy walls faked. For example, as a coin rallies, you might see a huge buy wall on the way up... often a fake buy wall. It vanishes often followed by a crash. Buy / Sell walls are often use to manipulate market perception, rather than as an accurate gauge of demand, but I do not think this applies to Steem. Likely, they are long-term holders, willing to sell at a fixed price and no lower.
Thanks for the great summary. I've got a lot of studying to do...
I'd love to be able to distinguish between a manipulation and true market conditions.
meep
psychology is how you guage what is going on, or attempt to at least
It's been like that as far as I have seen. Just the range of price differ.
Will be good to see it in opposite heights.
I wish it were lower too! Guess I missed a chance :)
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