LEO and PAL update: LEO has lots of buying pressure and PAL's downward movement has been halted

LEO and PAL are feeling two different types of pressure: Buy and Sell.

PAL used to trade three times as LEO. For example, few months back PAL was at 0.42 and LEO at 0.14 Steem. The ration has just simply reversed. LEO is now traded at 0.24 but PAL at 0.08 Steem. LEO has recently FOMOed as high as 2 Steem. PAL was down as low as 0.068 Steem. Therefore, current trend looks totally opposite.

However, PAL's downward trend has temporally stopped at 0.08 Steem and holding strong. Will it reverse soon?

What could be reasons for such opposite performance.

Let us see.

The current circulation of LEO is only is less than 2M and 1.564M is staked by 1395 accounts. On the other hand, PAL circulation is around 3M and 2.347M PAL is staked by 5301 accounts.

There are almost 4 times staking account in PAL which means that PAL is widely distributed. However, PAL covers any topics on the other hand, steemleo covers only investing related topics. Therefore, even one-fourth users is quite a feet.

Then why is LEO is over-performing PAL. There are couple things- less coin circulation, more sinks, investor mindset of users (i.e. more HODLers), regular updates and upgrades, no airdrop on moderators other than first airdrop in Steemloe, most probably it may be just a meaning less trend such as altocoin bear trend.

Moreover, anybody can earn PAL just adding #palnet tag on any post. By default, the large number of creators may think its free money. Therefore, they are creating the selling pressure. Since current number of sinks in PAL can't cope up with the sell pressure, PAL kept going down. Then why PAL had initial success. The probably newness and providing alternative to Steemit stagnant front end created the early enthusiasm. Since EIP in HF21 and HF22, Steemit has got some love back.

The prognosis is that LEO may keep rising since there are few large holders left who got LEO through airdrops and wanted to cash out. There are also few LEO whales who are still actively buying.

PAL's bleeding may stop soon. Since at this low price, there are lots buyers. With only 8K Steem one can get 100K PAL and 800 Steem 10K PAL. It can inspire new buyers to stake more PAL to earn handsome curation. PAL may find support around 0.08 Steem and can go little bit higher. However, I don't believe it will reach 0.45 Steem soon or ever!

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

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, trader and blogger since 2013