Steem is a social media sharing platform that rewards users in its native currency STEEM as an incentive for creating and curating content.
At the time of writing, Steem is ranked 50th with a market cap of $95 million and is trading for $0.33 per token.
STEEM has been trading in cryptocurrency markets since April of 2016, making it somewhat of a veteran in the blockchain space. The project was led by Dan Larimer before he left to create EOS.
Steem has had a roller coaster ride in the two and a half years that it has been alive. Most notably, in July 2016, after the price had sunk to $0.19 following a hack and theft on the platform, Steem blasted off to $4.60, when it first began to reward its users with the STEEM tokens.
This news was quickly sold back to a new all-time low of $0.07 in March 2017 before climbing all the way back to $2.56 and consolidating to form a distinct ‘cup and handle’ formation before the 2017 year-end bull run kicked off — which carried STEEM to a new all-time high of $8.70 per token.
The 2018 bear market has hit STEEM especially hard, however, as it has lost more than 96 percent from the top in just eleven months time.
Looking at the three-day and two-week RSI, we can see that STEEM has just peaked at a value of 90 and appears to be ready for a sell-off.
Given STEEM’s position near the descending support, the price will most likely attempt to retest the level to try and establish a solid ground as it explores 2018 lows.
Since topping out at the beginning of 2018, STEEM has fallen within a descending channel — bouncing from top resistance down to the bottom support and back again.
From April until November, STEEM was able to maintain its position in the top half of the channel using the mid-line as a support. Since breaking through that support last month, STEEM has slipped back to the bottom half of the channel and logged a new 2018 low of $0.31.
Considering that the stochastic RSI reads overbought and STEEM’s position on the daily chart, it is likely that the price will complete a second retest of the bottom support in the range of $0.28 to $0.30.These are levels which could make for a lucrative swing trade or accumulation zone as the price will probably consolidate briefly before heading back to the mid-line or top resistance. Click To Tweet
Traders should be sure to set stop-losses and sell limits in case STEEM does not have the power to break back into the top half of the channel.
Will STEEM be able to break out of its downward trend in 2019? How long before it reaches one dollar again? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold STEEM.