STEEM Loses the Majority of Two-Day Gains After Brief Pump

Well-known trader @CryptoNTez tweeted a STEEM chart that shows both last week’s massive price increase and the ensuing movement that has caused the price to retrace and give back the majority of its gains. Since the high reached on March 19, the price has decreased by an enormous 70%.

$STEEM

Up 200%, down 70% in a week#STEEM pic.twitter.com/xe3MPFLsXt

— Nico (@CryptoNTez) March 22, 2020

Last week, we posted an article looking at the prices of both STEEM and DASH, stating that the increases do not seem natural, especially in the case of STEEM. Let’s revisit STEEM to see how it’s fared since.

STEEM

On March 18, the STEEM price initiated one of its most volatile movements to date. It increased by a massive 250% in two days, reaching a high of 8,187 satoshis. However, what followed has been a similarly paced price decrease. STEEM has decreased by 70% since the high, returning to its more regular 2,500 satoshi price level.

The weekly chart better illustrates the magnitude of this increase, which has now left an enormous upper wick that looks more like an exchange trading error than an actual asset being traded.

Furthermore, we can see that the end-result of this move is virtually negligible, since the price has fallen below the 2,500 satoshi level, where it had been trading since August 2019. Therefore, the price has not left the accumulation range yet. We do not believe the pump was a sign of things to come but rather a one-off event that has no effect on the direction of the future trend. To conclude, the STEEM price has decreased considerably since its March 19 high, returning to its pre-breakout levels. This suggests that the move was not the beginning of a new upward trend but instead only a pump that has already retraced. The increase could have occurred as a result of a potential hard fork.