Steem At A Double Top? Double-Nope...(OK, It's Plausible.)
Predicting the prices of cryptocurrency is likely to make a fool out of most would-be Rasputins. Nevertheless, a great many of us try to do it each day, and even put a large portion of our "wealth", such as it calls itself in our bank accounts, behind those same guesses.
This either means "moon", or Rasputin had some questionable politics.
Nevertheless, predictions of what may occur remain popular so I'll throw a few charts out there I made in MS-Paint and then tell you I basically don't have a clue which one is right.
Exhibit A: Bullish.
Not at all confusing, right?
This is a shallow analysis based mostly on volume. The colors match up with the different areas of the graph I'm drawing comparisons between. Steem has pumped up as high as $3.61 during the writing of this post, and we still haven't seen volume anywhere near the peak of this June/July. A similar follow-through in the buying volume to previous highs from earlier this year would see us at $7+ for Steem.
Exhibit B: The Possible "Double-Top"
Even less confusing than the first one.
Double-tops are an actual thing in technical analysis, but in my observation, most cryptocurrencies ignore them and blow right past to new highs far beyond. It won't surprise me if Steem does just that. In my opinion, Steems looks strong on the charts and if it can blow past this area there's no resistance until who-knows-when. (Edit: Steem is already testing this hypothesis now, having spiked over $3.60.)
Either way, I have no idea what this means for the price of the Steem Backed Dollar, and that could admittedly be an enormous variable. Naturally, if the mystery buyer/hodler of SBD decides to dump, this could cause very unpredictable results for the Steem price - and probably to the downside.
This is a safe area to take some profits if you are a trader, but there's a good chance we could be looking at $3 as "cheap" for Steem in the near future. Steem has been aggressively bought on every dip, which is a new development as this has not been the case over the last several months. Large sell orders from several whales who have been powering down have prevented the price from increasing too much. For now, this appears to no longer be the case.
However, don't get caught holding more SBD than you need to - at $14, there may be much more downside than upside.
Definitely haven't used this image yet.
If you have any additions or errata for this post, please let me know! I will see that they are voted to the top of the comments, and will make the appropriate edits (if possible).
Join us at the Minnow Support Project! (click me)
We also have a Radio Station! (click me)
...and a 5000+ active user Discord Chat Server! (click me)
Sources: Bittrex
Copyright: CoinMarketCap