Lisk has continued to rocket higher from my previous post and continued to rise by a further 75.5% - IN JUST 4 DAYS! The cryptocurrency blew past all my expected resistance levels to reach a high of around $2.57 - now that is some unsustainable growth.
And unsustainable it was, since placing this high, Lisk has dropped by a total of 20% as it battles with support at the $2.00. Nevertheless, this retracement is healthy and was much needed as the cryptocurrency needs to pull back slightly before it can continue with this mega surge higher.
Despite being 300% up in 2020, it's still 1537% away from its All-Time-High
This thing is destined to head to the moon, and if you remember from my last post, I showed you that there is potential for this thing to go much higher by zooming out on the charts and showing how far away we are from the previous all-time high.
In fact, we are a total of 94% away from the previous ATH and this means that LSK still has potential for growth that exceeds over 1500%.
So, even though you may have missed out on the current 300% surge in 2020, you are still not too late to the party!
Lisk Price Analysis
LSK/USD - MEDIUM TERM - DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above, we can clearly see the INCREDIBLE growth that LSK has seen this year. It blew past all the previous short term resistance levels that I had in mind as it quickly surged much higher than anybody could anticipate.
In fact, Lisk actually almost cleared my 2020 price prediction target that I had called in November 2019. The cryptocurrency is most certainly going to reach my prediction this year if this growth continues. As a reminder, you can catch up with my 2020 prediction for Lisk here.
LSK blew past $1.44 and continued on its rampage to reach the high at $2.57. If you were to zoom in to the 4HR chart, you would see that LSK actually reversed directly at the long term 1.272 Fibonacci Extension levels that I had highlighted in the 2020 price prediction article at $2.50.
Nevertheless, LSK could not sustain this price growth and we can see it took a slight tumble to reach $2.00. This provides a strong opportunity to enter the market if you were looking for a pullback.
Where Can We Go From Here?
If the sellers continue to drive LSK lower, you could even look for more preferential entries beneath $2.00. Support below $2.00 can be found at $.95 (.382 Fib Retracement), $1.76 (.5 Fib Retracement), $1.70, and $1.58 (.618 Fib Retracement).
With the previous bullish momentum, I would not expect LSK to break beneath $1.50, but if it does, support can be found at $1.40, $1.31 (.786 Fib Retracement), and $1.15 (.886 Fib Retracement). The 200-days EMA is at $1.00 and this should provide another strong level of support.
What If We Don’t Even Pull Back?
Well, I am not expecting this retracement to last too long and we could even rebound at $2.00.
If this is the case, the first level of resistance lies at $2.20. Above this higher resistance is to be expected at $2.40 and $2.50 (long term 1.272 Fib Extension). If the bulls continue to break the resistance at $2.56, higher resistance lies at $2.66 (1.414 Fib Extension), $2.80, and $2.89 (1.618 Fib Extension).
If the bulls break above $2.90, they will be making an attempt at my 2020 price prediction at $3.00 (here is the article link again if you want to take a look). If they exceed $3.00, additional resistance then lies at $3.07 (short term 1.414 Fib Extension - blue), $3.20, and $3.32 (short term 1.618 Fib Extension).
Why Are We Destined To Moon?
So, why are we destined to moon? Well, against Bitcoin, Lisk has broken a VERY IMPORTANT long term technical trading pattern. Take a look in the chart below…
The LSK.BTC chart shows LSK breaking a descending wedge formation that was in play for almost 7-months! The break of this technical pattern allowed for the following 176% price increase.
But it will not stop there!
This pattern shows that the previous sellers had totally left the market and, without the previous selling pressure, there is pretty much no resistance as we head higher. Fair enough, we can expect some recent buyers to start cashing in over the next few days (or weeks) however, this selling pressure will not come close to the selling pressure we were experiencing during this falling wedge formation!
Let me quickly show you how the chart looks when we zoom out for LSK/BTC.
You can see that we certainly have much room to head further higher. This is literally just a small uptick in the previous downward trend and we are not even anywhere near the 2019 highs yet!
Lisk is most likely going to continue to enjoy this ride higher and we could even expect it to reach the 20 projects in the near future (it currently sits at the 38th position with a $200 million market cap value).
So, Lisk is most certainly destined to moon! You might feel like you maybe a little too late to the party, however, you really have to look at the entire picture and remember how much room LSK has to grow.
The cryptocurrency only just broke above a major technical pattern and is still over 1000% away from the previous high seen in 2018 - and this isn’t even the ATH!
Please remember, as always, this is not financial advice and you should only be investing what you can afford to lose in these markets. LSK is EXTREMELY volatile and this parabolic move would not be sustained. I would be in favor of a slower grind higher rather than another 100% price increase over the space of 5-days. Keep your eye on the market closely and make sure to always cover your positions!