Steem goes up, and steem goes down, and more often than not it has nothing to do with STEEM...
The steem/tron news has caused quite a stir recently with some of it definitely impacting the price of the coin.
However, it's not always that cut and dry...
There are some simple things to look at when trying to figure out if news is driving price action or it is more general market activity (namely bitoin activity) driving steem's price.
The best one being steem's rank on coinmarketcap.
If steem is up 10% on the day it must be due to something great coming out on steem/steemit right?
Most likely not.
In order to test this, just go to coinmarketcap and check steem's rank, if it's rank hasn't moved up, it's just general market activity pushing the price up.
It's rank had been around 78th for some time now even though it had more than doubled from its lows around $.10.
This didn't mean that steem had suddenly done something great, it just meant that the overall market was up and pulling all boats (coins) up with it.
This type of action is mostly what we see with steem and crypto, altcoins generally all moving together.
With the recent steem/tron news we saw something different however...
We saw steem shoot up to $.30 briefly yesterday.
A quick check on coinmarketcap showed that steem was ranked 72nd, which meant it was moving up MORE than the projects around it.
It was moving up most likely due to a steem specific event.
Fast forward to today and we see that steem is now down 10%. That must mean everyone hated the recent AMA with Justin Sun and Ned Scott right?
Looking at coinmarketcap, steem has barely moved off its 72nd ranking, currently at 73rd/74th:
That means the rest of the market is all pulling back today as well and steem is basically moving in line with the rest of the market.
So, the next time someone is trying to tell you steem is going up or down based on some news event just do a quick check of the ranking on coinmarketcap and you will likely have a good idea very quickly whether steem is moving on its own accord or just bobbing and weaving right along with the rest of the market.
Hopefully this tip will prove helpful to those wondering why steem is moving up or down on a given day.
Stay informed my friends.