STEEM is down 22% and still overbought ahead of the fork

Steem has lost part of its gains in recent 24 hours, but it is still above critical support.
The sell-off may continue towards the next barrier created by SMA50 daily.

Steem community will activate a hardfork and move the whole ecosystem to HIVE blockchain in less than seven hours. The fork is scheduled at 10:00 EST, March 20, and it will result in separation from the development fund Steemit controlled by Justin Sun, who allegedly tried to seize control over the ecosystem.

STEEM token experienced a strong growth ahead of the event as two major exchanges announced that they would support the fork and the airdrop for STEEM owners. The price went as high as $0.5264 amid a massive pump. However, a pump stage is often followed by a dump that erases a big chunk of the gains. That's what happened to STEEM. At the time of writing the coin is changing hands at $0.2970. The coin has lost over 22% in recent 24 hours; however, it is still below the lower line of the daily Bollinger Band, which means that the downside correction may not be over just yet.

STEEM/USD: Technical picture

The price may retreat to the intraday low currently at $0.2950. This local support is deemed to slow down the sell-off, but once it is cleared, a major barrier of $0.2000 will come into focus. This support is reinforced by SMA50 daily. Once it is broken, $0.1700 with SMA10 daily on approach will come into focus.

On the upside, a sustainable move above $0.3000 is needed to get the upside trend back on track. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.3172, which is the highest level of the day.

STEEM/USD daily chart

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram