Hello and welcome to another episode of TA (Technical Analysis) Today we are diving into the STEEM Token!
Above you can see the daily chart of the Steem token which shows the action throughout the year on screen. After a high of 0.399 formed in the early part of the year in February and March in an uptrend, we saw a lower high structure over the next few months which was followed by a significant decline since June and then a fresh low in the first week of August when the token started to gain buyers interest.
The proof was that instead of a further decline in the prices, the prices held a little, which continued and then since the beginning of November, we have seen buyers' confidence in this token at a different level. Because this dominance of buyers not only pushed the prices above the trendline of the lower highs structure formed at the beginning of this year but also held it above. However, in December, we saw this token under a lot of pressure. Obviously, if such a move comes after such a long time, then profit booking is also kind of normal and importantly such a steady increase in prices is also a very good sign because during this time fresh positions are built and with every higher low, the prices get more strength for directional move.
The last circle on the right in the image above is the place where the prices have built a base for now and this is the support of the same trendline which has been acting as a key resistance this whole year. Yesterday we also saw a nice buying in this token, however, the prices could not hold the upmove and by the end of the day the candle closed with a long wick, but if you analyze the volumes, historical price action and trendline support, then it seems that a decent upmove can be expected in Steem Token from here.