📈 STEEM Investor Report 18 March 2017 (Beware the Pump and Dump)
Trading Recommendation:
I hope you got in on this trade, I was only able to catch part of it because of my work schedule 😪.Except high volatility, either up or down big from here, look for trades of larger trends on hourly/daily charts
Investment Recommendation:
SELL or HOLD, chart patterns of STEEM and combined with losses in BTC and ETH indicate that this could be an altcoin pump and dump
Analyst Commentary:
The STEEM price rose an amazing 185.78% verse the USD over the past 24 hours on extremely heavy volume ($6,285,190) while producing a fairly steady price rally (shown in the price chart below). The % vested indicator increased by only 0.12% in spite of the heavy trading volume which indicates that the vast majority of the activity is coming from traders and not investors (read as short term vs long term price impact). Seeing a drastic drop in the price of both BTC and ETH indicates a large outflow of capital from those large market cap coins which often floods into the altcoin market. Capital influxes into the altcoin market can be used by clever traders to run pump and dump schemes.
A pump and dump scheme is where a large trader uses his capital influence to create a small bump in a altcoin price as he buys in. The trader than spreads word that the altcoin is ready to 'go to the moon' often seizing on some recent news (we have some of that) to bring in a influx of traders to create a trading volume and price spike. The reality is that in the still very young crypto market, this is not hard to pull off. When the traders who get in early or otherwise piled on see the profits they want, they dump their coins which often causes the price of the coin to drop to previous levels or lower. Many traders knowingly pile into these schemes just hoping their timing is good enough to make a profit. The sad part is that the ones hurt most are often the long time investors in the coin who believe that their coin is finally catching on and therefore buy more at the elevated levels before seeing it fall.
While I can not guarantee that we are experiencing a pump and dump, I believe that the extreme spike in volume and price without a matching level of power ups is a strong indicator. I suggest that those who need some $$$ take advantage of this spike to sell some STEEM but investors wait for it to pass over. We could see good opportunities to reinvest at the bottom.
STEEM Price Action (Last 21 Hours)
Data Credit:
Steemchart.com
Coinmarketcap.com
Steemdb.com
Disclosure:
The report published above is based on my assessment of the cryptocurrency market. Investors should consider this report as only a single factor in making their investment decision. All investments involve market risk, including possible loss of principal invested. The author is a cryptocurrency investor and while he seeks to provide honest assessments to the best of his ability may have a conflict of interest that could affect the objectivity of this report.
I do not believe the fundamentals have changed enough to sustain an up trend , you are probably right in your assumption of a pump and dump scenario .
The trend is already breaking and looking for a new support level, hopefully it will end up being higher than what we saw last week.
Resteemed since you are making a good point on the pump and dump schemes, some of the traders here need to learn the real world ropes that people like to pull, with their "endless" capital and debt based economy, the altcoins have a lot to offer, sadly nobody is using their potential but rather comes with their own old way of dealing with the world , the price is back to a normal level according to me. Maybe it will bump again after the hardfork and bum x3 times if we get a good result from the experiment, :)
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I think the steemit price is already on the moon if you take a look at the charts you've provided from polo.
Very good analysis. Thanks. I think you're right.
Thank you.
Thanks for the updates, I appreciate the posts!
Ive noticed my steem dollars go up past $20 since yesterday. but what I wanna know is if I own steem dollars in this site, does that count for investing into steem itself? or do you have to use fiat currency and go on coinbase or proponiex and other sites to purchase shares first? ive bin leary about investing into the crypto market yet as I dont know fully how it works. I still make my money the old fashion way with stock market and just strait hustlin
If your holding onto the STEEM your earning by participating in the platform I definitely would call you an investor. There are whales on the top 1,000 list who didn't deposit but instead earned all their STEEM through mining or posting/curating.