LEO and PAL trading update: LEO's organic growth begins and PAL finds a support.

The biggest unstakers of LEO are gone. In the last month around 45K-50K LEO has been dumped by some of the biggest airdrop beneficiaries. Price uptrend of LEO has attracted a few big unstakers too, however, compared to the previous unstakers, their effect will be smaller.

In the meantime, few LEO whales and newcomers are continuing to buy LEO which is keeping LEO's price at higher floor (0.19 Steem) as of now.

However, it has to be seen whether LEO sinks and investors can consume the LEOs from the willing sellers and traders. Now that most airdrop beneficiaries who wanted exit has gone, the organic growth can begin.

Moreover, there are still large amount liquid LEO from the inactive members out there (see the figure). One holder has 30K LEO who is a PAL curator. Their intention is not clear whether they are looking for better LEO price to dump or are not aware of the airdrop. It looks like a large number of LEO holders who got LEO from airdrops have not yet checked their balance to stake them or simply not aware of it.

Therefore, there is no immediate danger of large dump from the liquid LEO holders other than the unique 30K LEO holder who can really move the market.

As a LEO whale, I am still supporting a higher floor buying a good amount of LEO almost daily. I also know that there are other whales who also think like me on the potential of @steem.leo.

Figure: Top Liquid LEO balances

The confidence in the price floor is a big selling point. Investors can dump a token if its price keep falling which just happened to PAL, in some extent to Steem. On the other hand, uptrend and stable price of a token attracts new investors cum speculators. Moreover, there will be always a large number of sells from the content creators which is totally OK since @steem.leo is a content creation platform, first of all.

PAL seems to have found floor at 0.03 Steem. There are lots of buy support at this floor. However, any small uptrend is killed by the willing sellers. Is low price of PAL is working for its distribution-- probably a little bit.

However, PAL has lost confidence of large number of its holders. Nobody wants to hold a token whose price continues to drop. Moreover, PAL current economic model requires a re-think along with more sinks. Otherwise, it's price can keep falling beyond 0.03 Steem.

The bottom line is that any token should have enough demand from the new investors and sinks to overcome the supply provided by the content creators and exiting investors/traders (who bought earlier for a profit). Confidence in a token also attract new investors if the developers of the DApp have a vision and deliver on their vision periodically.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@dtrade
Cryptominer , occasional trader and tech blogger since 2013