That's simply because consensus (= majority of the market participants) doesn't see much value in it at the moment.
Why do prices rise and go down? It's because the way order books work. Let say bid price is 0.1 sell price is 0.11 in the market. The orders who are placed first will get executed first so if you want to buy fast or sell fast you have to over or under bid someone else. If you bid 0.105 your order is first. If you would sell for 0.105 your order is also first. So it ultimately comes down to buying or selling pressure that causes prices to fluctuate by the participants that currently are active in the market.
Contrary to what much people think, if you don't have any open orders but just hold coins then you don't influence the price. That's why coins with low volumes can be easily manipulated.
Why do people over or under bid each other? Can be many reasons. But usually people buy for one reason, because they think it's valuable to them (and to other people). With selling it's usually the opposite reason. But sometimes people also sell because they see another bigger opportunity or to use the money for something else (buy a car, buy a house, etc.). Profit taking can also be something you do systematically as part of your risk management strategy.
Imo a better question would be if it's really priced to low and why that should matter. Because you seem to be convinced that steem is undervalued based on the way you ask your question.
How did you come to that conclusion? There is not really an accurate way to value cryptocurrencies because they don't produce any cashflow like stocks would do. And even then it's much of a guessing game really.
What most people call fundamental investing is really just their own bias. You have to be an insider or expert in a certain niche to say something useful about it. (that's why most financial advice sucks. It's not really that they are all scammers, but a lot of people are ignorant.)
And another problem you would face with this type of thinking is the following: markets are simply not efficiënt. In fact, this is what modern type of investing is really based on. Investing works because markets are not efficiënt, so you can find good deals. Because if markets would be efficiënt everything would already be priced in perfectly by the market. This is not the case. But that doesn't mean the market will spot the same opportunities you do. There is this saying in finance: "markets can stay longer irrational than you can stay solvent." That's kind of what i'm trying to say. Assets can stay undervalued for a loooong time.
That's why fa is not that accurate on the short term.
We are actually also surprised about the drastic low price of steem this year though and I think one of the reasons has to do with the rate of Bitcoin because most cryptos and alt cryptos are highly dependent on the amount of Bitcoin and sometimes their market cap.
As for steem, the price it really affected some investors and steem earners as this wasn't really what they expected. This applies to even Bitcoin itself. This recent days we can also observe the erratic or rise and fall of Bitcoin itself and we should be at least thankful that it has actually risen from the value it was before even though we are expecting more increase in price as this also fosters the worth of steem and other cryptos.
Another important reason has to do with the powering down of some great investors and whales on the steem blockchain. This also affects the market value of steem and this is actually one of the reasons we need more investors on the steem blockchain.
In conclusion, that's actually how cryptos works. There are times whereby the market seems to be very favorable just like what happened in 2017 and there are also times whereby the market seems to be unfavorable just like what we are experiencing. We just have to keep hoping for the best and keep believing in what you do. I strongly believe #steem will surely rise again. Also don't forget to keep promoting the steem blockchain by inviting people and investors on the steem blockchain which you can achieve by making Steemit go viral.
Thanks for reading and I hope this helps.
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