Here's a bit of technical analysis of the WEED token price - something you don't see often! Keep in mind this isn't advice, and not meant to endorse or criticize anything. This is a look at the data available, along with some basic analysis and discussion.
If you aren't aware, WEED is a token primarily accessed through the hive engine site. In the past I owned a small stake in the project, but currently don't, and convert what I earn into other cryptos.
As you can see on the long term chart presented, which is denominated from 0 to 0.25 USD, the price was stable somewhere between 3 and 5 cents, before breaking out at the start of October. That's when an exciting announcement was made about WEED's future prospects and improvements.
In blue is the 0.21 USD resistance level, which was tested for a couple weeks, but held fast. That's because the owner of the token is attempting to sell a massive market-changing amount of them at that price. The token's issuer is listed as @coffeebuds, with tens of millions of tokens in hand, and hundreds of millions more available to be created from thin air as desired.
Is a speculative token created for free from thin air, with limited (or no) current uses, and hundreds of millions of identical copies potentially on the market, worth two American dimes and a penny?
So far, the market has said no, and that price point was never breached, despite the frenzy of buying spurred by promotional posts.
As hype has cooled in the past 10 days, so too has the price. Quickly falling to almost the 10 cent level, where it had supported once on the way up in early October, the price has since ranged in a descending triangle pattern.
That indicates another test of 10 cents coming soon, if fundamental conditions remain similar. Further marketing may see another test of the 21 cent level, as the owner sells off small amounts of his stake, temporarily halting any upward movement.
Here we have the current buy and sell orders. If you're not familiar with looking at these, basically what this one says is that there's not much support until 10 cents, and increasing upside resistance.
I marked the most significant trades (showing) on each side with a red line. Somebody with 600 HIVE ($65 USD) could buy the price immediately up to 16 cents, technically reversing the descending triangle.
That said, somebody with a similar stake of WEED could sell it to instantly push the price down to test the 10 cent support level.
So, it's not a very large market. The main player is the house, potentially with almost half a billion tokens to sell. While the stated goal is to sell most of the tokens at much higher prices, even at just 0.21 each, it adds to over $80 million USD.
And who knows, maybe someday they'll "legalize" WEED, sending the price through the roof?!
For now, 0.21 appears to be the ceiling, and a test of 0.10 seems impending.
Long term depends on too many factors to calculate here, including the owner's market moves, the value of HIVE, and the overall health of the cryptocurrency realm. It's possible we'll see WEED at 0.420 before too long.
DRutter
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LOL @ maybe they'll legalize WEED one day and it'll go through the roof! :-D
That's the game plan ;)
Hahaha, I laughed so hard when I read that, I wee'd!
I own weed, but not WEED!
Big fan of storing value in things I can hold in my hands. Currencies can be okay, if they have real uses, other than ones made up solely to inflate the value.
Tuning in to see what the price of WEED is ;)
It's high!
I just got into Dcity, and I'm planning on getting lots of dispensories. Puts a whole new meaning to the term "farming" lol. But seriously, WEED is looking strong. They and BEER are doing a good job of getting integrated into lots of parts of HIVE.
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I think people like those names. WEED and BEER.... heh yeah they love their BEED and WEER... I mean... hiccup
The promotional bubble popped, but the price has stabilized. I expect some growth in value as we head into Thanksgiving. Lot's of good news seem to be coming!
Thanksgiving? It's Christmas time, eh!
This would be the ideal (and who knows, maybe one day they will "legalize" the WEED, sending the price through the roof) not only in this but also in several more that appear and we invest waiting for this moment.
I wish they never legalized in Canada. : ((
Prices are so much worse, and so is the quality.