Lisk has been on an absolute rampage over the past few weeks, being able to increase by a total of 145% over the past 4 weeks alone to reach the current trading price of around $1.40. If we were to take the entire period of 2020 into account, Lisk has actually surged further by a total of 186%.
The latest price increases have allowed Lisk to begin rising within the market cap rankings as it presently sits at the 48th ranked position with a total market cap value of $176 million.
I had posted a Lisk analysis just a few days ago, however, the price has moved further since then and I felt like updating everybody on where we could head toward next. You can read the previous TA for Lisk here.
Lisk Price Analysis
LSK/USD - MEDIUM TERM - DAILY CHART
What Has Been Going On?
Since my last Lisk analysis, we can see that the cryptocurrency continued to rampage higher. It met resistance at a long term bearish .382 Fibonacci Retracement level priced at $1.13 which caused the market increase to stall for a few days.
However, when February opened up for trading, we can see Lisk absolutely bulldozing past this resistance as it climbed higher. It went on to break above additional resistance at $1.25 and $1.33 (bearish .5 Fibonacci Extension) to reach expected resistance at $1.41 which is provided by a 1.618 Fibonacci Extension level.
We can see Lisk has spiked higher, indicating that the bulls still want to push this beast even higher over the next few days.
Where Can We Go From Here?
If the buyers continue to drive above the current resistance at $1.41, we can expect immediate higher resistance to be located at $1.50 and $1.54. The resistance at $1.54 is provided by a long term bearish .618 Fibonacci Retracement level that is measured from the June 2019 high to the December 2019 low. Above this, resistance then lies at $1.65 and $1.70.
If the bullish pressure continues to drive LISK above $1.70, additional resistance is located at $1.76 (1.414 Fib Extension), $1.83 (bearish .786 Fib Retracement), and $1.87 (1.618 Fibonacci Extension level).
Beyond $1.90, resistance lies at $2.00 (bearish .886 Fib Retracement), $2.10, and $2.20.
What If We Pull Back From Here?
On the other hand, if the bulls fail to break above $1.41 and the market reverses, the first level of support is located at $1.33. Beneath this, additional support lies at $1.25, $1.13, $1.06, and $1.00.
If the selling continues beneath $1.00, support lies at $0.87 (short term .618 Fib Retracement), $0.80 (100-days EMA), and $0.70.
Should You Invest?
Before I say anything else, I NEED to make sure it is clear to you that this is not to be taken as financial advice and, even though I am right about most things (just kidding - check my blurb :p), you still need to do your own research and only make investments in which you can afford to lose. Remember, cryptocurrency is a very dangerous and volatile industry so it is not wise to be investing any money which you cannot afford right now.
Now to continue. Should you invest?
Well, let’s zoom out on the charts and see how this latest price increase looks in relation to the entire market.
As you can see, this latest 145% price increase is pretty much NOTHING in the grand scheme of things. If you feel you may have already missed the boat I would urge you to take another look at the overall market and notice that there is still MUCH ROOM for the market to grow within.
This is because the market saw an incredible drop from the previous all-time high price as it dropped by pretty much 99% - taking everyone down with the ship. However, after two years of selling pressure, it does seem like all the sellers may have left the market and those that are remaining actually have faith in the project’s future.
This is why LISK has been able to rise so rapidly - because there is not much selling pressure at all!
In fact, if we managed to increase just to $20 this would already be over a 1000% price increase.
Lisk has been on a rampage since 2020 started, however, do not feel like you have missed out just yet. It is still relatively early in the grand scheme of things as the market has only just started to kick off.
Additionally, one more thing I would like to add is the fact that the LISK team still have a plethora of funds available to them to continue with their developmental work. Just take a look at their balance sheet below;
As you can see, the team has 3.6 MILLION EUR along with 2,776 BTC and a bunch of other holdings. In total, this amounts to $48.8 million and this should provide comfort to any LSK holders with the knowledge that the team is adequately funded to continue developing their project.