STEEM/USD Experiences Short Term Recovery After Apparent Censorship From SteemIT – Can the Recovery Continue to Drive Price Action Above $0.30?
- SteemIT have recently banned a user from their platform due to a violation of their TOS.
- However, it is extremely important to highlight that the user can NEVER be banned or censored from the actual STEEM blockchain itself.
- Support moving forward — $0.2680, $0.2508, $0.2447, $0.2393, $0.2309, $0.2229, $0.2176.
- Resistance moving forward — $0.2843, $0.3007, $0.3300, $0.3550, $0.3912, $0.4109.
Latest STEEM News
Steem is an open-source blockchain project designed for users to come and publish content in a decentralized way. After laying off over 70% of their staff during 2018, due to financial difficulties, they have recently come under more fire after Steem.IT banned a user from their platform.
Earlier in the month, SteemIT.com had added a user called “Dark Overlord” to its banned list, effectively removing the content posted from this account from being seen on the platform.
Dark Overlord is a hacker group who claimed that they had “damning” evidence relating to the terrorist attack conducted on September 11, 2001, commonly known as 9/11. The group claimed that they had received the files after a hack on insurance groups that were related to the World Trade Center, the target buildings of the attack.
The user had also previously been banned from other social media websites during January, such as Twitter and Reddit. An admin from SteemIT then decided to ban Dark Overlord for violating their Terms of Service Agreement.
SteemIT has received a significant amount of backlash for this action, as users call into question the apparent immutability claimed by the Steem blockchain. Users are under the impression that this meant they are allowed to post any content without fear of being censored. However, it is important to understand the clear distinction between STEEM and SteemIT.
SteemIT is a platform built upon the STEEM blockchain. It is a shell that provides an interface for users to view data upon the STEEM blockchain. SteemIT is the first and most widely used interface for the STEEM blockchain. The SteemIT company has every right to ban users from their platform that violate their TOS, which users need to agree to when they register their account.
However, Dark Overlord — and everyone else on SteemIT’s ban list — cannot be removed from the STEEM blockchain itself. All of their posts are still embedded in the immutable STEEM blockchain, and can even be viewed through other STEEM blockchain shell services such as Busy.org.
Let us continue to analyze price action for STEEM/USD over the recent term and proceed to provide any areas of potential support or resistance moving forward.
Steem Price Analysis
STEEM has seen a 4.78% price increase over the past 24 hours of trading as the cryptocurrency is now exchanging hands around $0.2728. The market has seen a 14% price decline over the past trading week, but is still up by a total of 24% over the past 30 trading days.
STEEM is currently ranked in the 52nd position as it presently holds a market cap value of $86 million. The cryptocurrency has seen a precipitous price plummet totaling 67% over the past 90 trading days as the 33-month-old project now trades at a value that is 96% lower than the all time high price.
STEEM/USD — 4HR CHART — SHORT TERM
Analyzing the STEEM/USD market from the 4HR perspective above, we can see that the market rebounded from a short-term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.2176 toward the mid-point of December. The market then went on to rally by a total of 64% over the following few days until reaching resistance at the bearish .236 Fibonacci Retracement level (drawn in red) priced at $0.3550.
After reaching this resistance, the market rolled over and began to decline until reaching support around the $0.25 handle, where the price action bounced once again. During the first few days of 2019, the market attempted to recover but could only surpass the $0.33 handle slightly before reversing and falling once again.
We can see that the market then continued to fall until reaching support at a short-term downside 1.272 FIbonacci Extension level (drawn in orange) priced at $0.2508. Price action then began to rise but had recently been stalled at resistance provided by the short-term .5 Fibonacci Retracement level (drawn in green) priced at $0.2843.
TREND — BEARISH in the short term
The recent creation of a “lower low” has rendered this market as bearish in the short term. However, if price action can break above the $0.30 handle the market condition will return to a bullish trading condition.
Where is the resistance toward the upside?
If the bulls can maintain control of the market momentum and push STEEM/USD higher, they will immediately reach resistance at the short term .5 Fibonacci Retracement level (drawn in green) priced at $0.2843. Further resistance above this level can then be located at the short term .382 FIbonacci Retracement level (drawn in green) priced at $0.3007.
If the buyers can continue to drive price action further higher above the January 2018 high at $0.3318, then more resistance toward the upside can be expected at the bearish .236 Fibonacci Retracement level (drawn in red) priced at $0.35504.
If the bullish momentum continues to climb above $0.36, then higher resistance can be located at the medium-termed 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $0.3912 and $0.4109, respectively.
Where is the support below the market?
If the sellers begin to regain market momentum and push price action for STEEM/USD lower, we can expect immediate support toward the downside to be located at the short term .618 Fibonacci Retracement level (drawn in green) priced at $0.2680.
Further support below this can then be located at the short-term downside 1.272 Fibonacci Extension level (drawn in orange) priced at $0.2508 followed closely by the short term .786 Fibonacci Retracement level (drawn in green) priced at $0.2447.
If the bearish pressure continues to cause STEEM/USD to drop even further lower, more support can then be expected at the short-term downside 1.414 FIbonacci Extension level (drawn in orange) priced at $0.2339, followed by the short-term .886 Fibonacci Retracement level (drawn in green) priced at $0.2309.
The recent backlash over the alleged censorship by SteemIT has caused an uproar amongst the community. However, it is extremely important to understand that the principles of the STEEM blockchain are still intact, as the user can never be banned from the actual blockchain itself.
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