Steem has been trading in shallow ranges and slowly stepping down for last many days. Though i must say down-move after breaking down from symmetrical triangle pattern were not as swift as normally happened after breakout or breakdown from said pattern. In fact today, steem is forming a green candle and is trading at 6.4k Satoshi.
Before going any further with analysis, lets take our attention on chart below....
In chart above I want you to notice following:-
- Volumes: For significant move on either side, volume plays an important role and one can see clearly that recent down spiral of steem price are backed by very thin volumes and i have highlighted that area in yellow color circle for clear reference. Though the trend is clearly on downside but participation of bears was very less but bulls fight was also clearly missing, hence low volumes.
- Supporting Levels: The level of 63K satoshi is a very strong support for falling steem price. This area was acted as very stiff resistance in past which now become as strong support for this script. Beside this support line which is marked as SUPPORT 2 on chart above is 50 Days EMA , which is just slightly above from support 2, hence giving multiple support.
- Highlighted Triangle Area: This area which i marked on chart above is to just a speculative target after breakdown from Symmetrical triangle pattern. Its often seen that after breakdown from said pattern script generally halt their moves at exact height of leg on left side of triangle and i just flip flop it to speculate target area of this breakdown. And, I might be right area because Steem has halted its downmove after hitting the low of exact height of said leg.
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Now the conclusion
In conclusion, I am inclined to say that support level of 63K satoshi is very important and if this support is broken then we will witness significant down thrust in steem price. But due to low volume, I am hoping that steem price may reverse or atleast consolidate and one never knows when liquidity strikes which take steem price to higher side.
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