Steem token has now weakened!
Hello and welcome to episode 17 of TA (Technical Analysis) Today we are diving into The Steem Token!
Well, it doesn't feel good to say this, but what the price action is telling us is that the Steem token has now weakened after today's extended fall.
My charts won't seem that complicated to you, there are not many indicators, trendlines and patterns as I like to keep the chart analysis simple for me and you all. Since the price itself tells almost everything I try to analyse it as best as possible. It is just a matter of understanding market psychology, the bigger the market participant you are, the fewer indicators you use. So always try to understand the behaviour of market participants in price action.
The circled area you are seeing above in the 1D chart of steem token is a breakdown of an important support trendline which weakens the interest of buyers among market participants. Suppose you are a buyer, then obviously you will be ready for aggressive buying in any token as long as the price remains bullish above the important supports. Your aggression is reflected in the form of quick moves on the chart. Whereas, if the price breaks the critical supports downwards, then obviously your confidence will weaken and you will make comparatively fewer purchases, due to which the dominance of the sellers will increase and the price will start showing weakness.
This is exactly what is happening in the Steem token right now!
It is not that there are no supports at lower levels, but after a trend breaks a psychological shift does take place, Then it is necessary for the price to once again come under the control of the bulls for another psychological shift to take place after which the buying trend is again formed in the price and Buyers become dominating.
So for now the dominance of sellers in the Steem token is increasing and this can take its price even lower. I was also interested in buying above the recent support but now I will not make any fresh purchase in it unless the price closes bullish above 0.30 level or forms a bullish pattern till around 0.21 And in between this range I'm just going to monitor the price action patiently.
Upvoted! Thank you for supporting witness @jswit.
I think I have actually been expecting that to actually happen but well, let's hope that it will recover soon as I am so sure of that. I am certainly sure of that as it is just a matter of time
It surely will recover but if it remains below important supports then the recovery may take time.