As I promised before, I want to talk a bit about the graphics of steem in these last months. I will not make a speculative analysis for you to make investment decision. On the contrary, what I want is to report the price movements, the events that occurred, and possible reasons.
It is very difficult to set a direction for the currency price steem in exchanges. Simply because the currency is still in the phase of "price formation". In the chart we can see two events that can be considered important and motivating movements in these months.
Zone 1 & 2.
Many people, like me, have come to know the steem currency and steemit platform when this valuation occurred in Zone 1 & 2. Probably you may have seen some news like this in this period;
The buying pressure, led many people to start looking for steem currency. Many people bought to invest in power on the platform, the famous whales. And people who did not want to miss the opportunity entered the wave.
Zone 3 & 4.
This trend of low or depreciation can be explained by profit-taking, both investors and people wanting to settle the profits made with posts on the platform and taking profits after they bought at lower levels. The truth is that the value of steem currency have ascended up far very fast and ridiculously, of course she could not stay at that level. It's hard to say if this downward trend may be leading to a fair price formation for the currency, but we can consider some factors that bring pressure for a long-term decline.
As you can see, the daily transfers, the peaks are increasingly rising, as well as funds. The increase in transfer is normal considering the inflation factor. The transfer to exchanges can shed some light on the devaluation of the currency, while writers turn their gains in profit.
Another factor in the downward trend is the realization of profit by the whales. The staging system does not encourage the writers to be holders. In fact, steem power in my view is not enough to make writers insure their profits within the platform. On the contrary, some people that become dependent on the platform income, will realize their profits, often selling at market price and making the price fall in the long-term.
Greatly appreciate the time you took to put this post together. The charts and analysis are very informative.
In my opinion many new account holders do not understand upvoting or the benefits of holding STEEM Power. I have seen several newbies just upvoting very often everyday and not realizing that it depletes their upvoting power and reduces potential curator rewards. With the establishment of the 30 minute curating rule, the potential rewards from curating has gotten more complicated. I understand why the rules are in place and agree with their enactment, but new accounts holders who do not understand the rules may be frustrated and discouraged.
For myself I learned a lot from Mind Your Votes! An investigation and guide to maximizing your Curation Rewards, it may be of help to people reading this thread.
SteemIt is appealing to a wider variety of internet users, some of which are not savvy on crypto-currencies. There may be more than a few users on SteemIt that do not understand the relationship between STEEM, STEEM Based Dollars, and STEEM Power. And still even fewer who know how to transfer between the different currencies. I say this because I had one user reply to one of my post who did not have any other kind of crypto-currency wallet, basically completely new to the concept of crypto-currencies. As SteemIt gains more of the general internet users the more experienced users need to help the newbies. The fact that SteemIt is attracting more general internet users is very encouraging to me for the future prospects of STEEM.
Steem Dollar Stability Enhancements. This should also contribute to the continued success of STEEM.In a recent post by @dantheman he talks about
In zone 4 of your price chart, I see STEEM forming a long term base. This usually portends well for the future price.
Steem on,
Mike
#bearish long-term
thank you for the excellent analysis!
It looks pretty stable, we have stabilized the price, in my opinion now it will grow from here, as the userbase grows.