Don't pay attention to the price drops! HODL and you will be rewarded!
I know a lot of you is worried about the recent price drops. Steem and Steem Dollar prices are going down rapidly but we as a community should help them get back to where they belong. On the MOON!
First, let's look at why the prices are dropping and what is causing this mess. Back in October, there was an insane media coverage of Bitcoin and Ripple. My personal feeling is that Ripple articles were paid and caught fire with smaller media outlets but that's a different story. What this media coverage did is attracted a lot of new investors looking for "the next Bitcoin". They all came with a dream of becoming millionaires overnight and a lot of them ended up throwing their money away. Their presence was felt and recorded as a big spike in prices for every single crypto on the market including Steem and SBD.
As it turned out these were all short-term investors. Their money came in and went out fast when they saw this is not a place where they can make a million bucks in a month so the ones that didn't lose their cash on garbage currencies cashed out and went home. When they left the money left with them and left us with smaller market caps that have to regulate the price. What we are seeing now isn't a crash, it's a correction and you should remember that!
I am no expert on crypto, I have a lot of experience at the stock market and the charts are the law in both of these markets. When you see an insane spike in price like in this chart you have to expect it to come back down.
I used Ripple as an example because it was the most popular coin in the past month or so. Now this line that is coming down is hitting a price range of about $1.7. As it has shown two days in a row, it is most resilient at that price so you shouldn't expect it to go below. This is also known as the support stage of a price chart. The only way from here is up. How much, no one knows but the same principle is applied to rising prices as well.
Steem is currently finding it's support point at $4.7 - $4.8 and it should start going back up from here once the market stabilizes. If you want to support this community and help Steem and SBD grow then hold on to your currency. Better days are coming and this community is growing. A cryptocurrency can't grow unless it has a good community behind it.
The crypto market is still new and still needs a few years before it gets widely adopted. Think of us as pioneers of a new era and as early adopters you will be rewarded in the long run. Sell what you must but hold on to what you can spare. Prices will only go up from here but at a slower pace. Let time work for you and HODL my steemians! We are going to the Moon for sure!