Disclaimer! This is my personal analysis for the steem crypto currency. nothing said is to be taken as trading advice or otherwise.
Moving on I realize that not everyone on here understands the market or trading in general and i'll admit that I'm no guru either but I do know more than the fundamentals that most people know and i do trade profitably from the foreign exchange market through my regulated broker.
Time to break it down
If the Steem currency adheres to the usual rules or structure that other currencys do then it's safe to say it would be some time before we see the currency trade below USD$4.10 The image bellow will explain why.
in the market there's a structure called a double bottom. It's where price reaches a level that speculators deem it to be cheap enough to re-invest in similar to if bitcoin was to drop drastically most people would buy it back because they know the worth and potential value of the currency.
Then there's the opposite, where speculators deem a level to be to high to buy into.That would be an imbalance between perceived worth and current value. if you understood that then the below image would further clear it up.
As you can see the speculators aka humans (mostly) drew this imaginary line in the price of steem because it's where the majority deem the price to be over bought, meaning the price and value aren't a match. At around USD$6.50 is where the value of steem may drop, or continue to make higher highs.
Hopefully I've enlightened you about some of the basics of how the market works, the potential value of steem and how traders think. cheers!!
