the drop you should fear!

in #steem6 years ago (edited)

STEEM... the lovable crypto we have decided to invest in, is in its biggest challenge ever, I believe.

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The price of STEEM dropped to new lows, liquidating its market cap to $210 Million and 41st seed in the crypto market.

trade stats - 11th Nov 2018

Bid/Ask 0.74433 / 0.74825
Day's range 0.74048 - 0.76673
52wk range 0.00002 - 8.40298
Previous Close $0.77507

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after several attempts to break the resistance around $0.82 (the blue line), even after HF20 and some improvements, finally the support on $0.78 (the red line) broke and the price dropped to new lows.

what's next?

I believe the STEEM price depends on two major factors:

  • Bitcoin and Ethereum prices; which don't show a strong signal of getting any better sooner than 2019
  • more adoption of the blockchain through new dApps and frontends like steemit, dtube, steepshot etc

more dapps and frontends on STEEM blockchain, means more usability and more consumption of the token and therefore, more demand.

Steemit is a great platform but it is limited to blogging enthusiasts and lovers. there should be many more for STEEM to be applied on.

Technical support/resistance levels

knowing these levels help you in entery points and exit strategy:
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About EXIT

Does it sound awful to talk about exiting a position? think again! everybody should have an exit plan from any position in life!
Never enter a situation that you don't know how to exit!

my decision?

I don't panic, may stop buying more tokens to see the 0.7 to 0.78 channel ends in which direction.
I will continue on blogging, which is my passion and promoting STEEM and other cryptocurrency platforms to those who are in my social media rings.

We should help the blockchain ecosystem to penetrate people's lifestyle and change their mindset to decentralisation.

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we will be all fine, don't worry 🤞😉

Steem is dead

I'm not so sure. Steem Monsters has a growing cult following and it makes Steem and Steem Dollar transactions native to the experience. So far Steemit has only attracted a very small percentage of the user base it can potentially serve and I think a slow burn isn't indicative of failure.

viral dapps on SMT will help a lot

it is not! if you had said steemit i would still say no! but Steem has bigger future even.

i dont think so... being slow doesnt mean its gonna die.

I am sad to read this. However, I continue my blogging too. Since i am blogging with wordpress and connected using @steempress to auto post my article to steemit so its fine by me.
Let us hope for the best.
Thank you for sharing @honarparvar You are awesome

that's a very wise solution 👍

Can't wait to buy more under 50 cents!!

honestly I can't hope for that!!

You should! Picking up some cheap and then seeing it rise again someday is worth the temporary pain of seeing the value drop..

you are not worried the whole system collapse and ppl don't adopt it anymore at all?

I feel it'll bounce back better, and even if its not on this platform there will be something with steem.

yes there are alternatives already... but it's better to have here fixed and functional 🤞😏

Yea, shall see how it all plays out!

i would buy some if under 50 cents.

Under 50 cents?

I think Steem is solid but needs to be taken to the next level. We need more apps to be built on it and we need more of a viral component. When the next crypto run happens Steem will come back strong. It has a solid use base with functional dynamics. I would love to see some partnerships for cross promotion with platforms such as BAT/Brave, LIT, or Minds. There's plenty of room in this space and all would benefit from driving mass adoption.

Do you believe in leadership team? Why?

mass adoption is the key 👏👏👏 thanks for your comment

mass adoption = less steem per person posting here (to many wants a piece of the steem pie)

mass adoption for the blockchain technology. not necessarily for steem.
though earning tokens will be more difficult, the value of what you earned rises

steem needs more application built on top of it...the more applications, the more the servers, the bigger the market cap...
steem can go down to a few cents in a long enough bear market...as you can see, steem dpends on the general market and not on its own market...

No, dapps is not the problem. It's the lack of users. There's plenty of dapps here that run circles around Steemit itself.

esteem, busy.org, steepshot, etc.. are nothing but "replicas" of the same account with different features .. I am talking about adding new servers, physical ones, real ones that expand the blockchain...this will potentially lower the price of steem but on the long run it will have more users, we are now stuck on a certain amount of users and the more users sign up the less reward everybody will get...unless, again, someone invests in adding new servers, menining new ram, new RCs and all that good stuff
In a simple example: let's say that all 300 Millions steems or so are held under one account, then that account can produce a vote at 100% of about $ 442.96 , multiply that by around 10 times and you will have a potential of $ 4,429.6 daily revenue that will bring your steem power at 80% just in time to reload for the next day...
So in a year you will have roughly 1.5M new steem on top of those initial 300M...
That is 0.5% growth per year...that is not good business!
I say at least a few tens of millions of dollars of growth per year is needed to get things rolling and that means having a plateau of at least 3 Billions dollars which can be possible in the next bull run a couple of years from now
Or...If you want to be the next facebook or Amazon you need to invest in hardware..but since that is way costly I say wait till the new bull run ..

oh yea I forgot...users leave because the rewards are very small and consider it a waste of time, justly so...so again if you want people to come in by the millions you need to invest in hardware by the millions...
people leave steemit because it is already "crowded"...

Steem's inflation continues to challenge it in the bear market. More selling than buying, and the inflation makes it easy to sell.

right, but there are instruments to control the inflation. saving accounts and investment opps can buffer the money printed

Steem has been sliding in the rankings constantly.

Thanks for the great analysis
but I love using steem, to me its better than Facebook and futuristic :)
I am not afraid to keep the steem with me till the time I can use steem

great cause 👍 good luck steeming

Friendships are stronger than prices... If you participate in community, then naturally you want to continute steeming...

I think the first point you make is the biggest factor in Steem's price. If Bitcoin and Ethereum continue to trade sideways Steem will probably decline slightly. The catalyst for Steem rising will be new investors and they aren't likely to enter while the overall crypto market is not showing any signs of price growth.

that's true 😏

I don't panic, may stop buying more tokens to see the 0.7 to 0.78 channel ends in which direction.

Doesn't sound like that when reading your title and image or just classic clickbait-tactic? 😜

lol let me put it this way, you may get terrified to see there would be massive drop (as it happened today, 3 days after that post) but you still know what are you doing so you don't panic.

I will buy 500 tokens today or maybe tomorrow. and maybe some more after signs of healing 😏