Lisk has seen a very turbulent and depressing year of trading during 2019. As of November 2019, the cryptocurrency trades at a price of around $0.68 which is around 50% lower than the 2019 opening price of around $1.34 - a very bleak scenario!
LISK did witness a small bullish phase towards the first half of the year in which the price for the coin soared by around 100% to reach the 2019 high-day closing price of around $2.20 in June. LISK had spiked further higher from here, managing to reach a 2019 high of $2.55, however, the cryptocurrency was unable to ever close above the $2.20 resistance level in 2019 which was provided by the 200-day Exponential Moving Average (EMA).
After rolling over at $2.20, LISK went on to drop by a total of 68% to reach the current trading price at around $0.684. LISK had broken beneath the 2019 low during September and continued to drop until meeting the current support at $0.65.
Despite this lackluster trading period in 2019, I believe LISK has the potential to turn things around in 2020 and start to regain some of the losses seen this year. Lisk continues to actively develop the platform along with the schedule of the roadmap and we can expect this to continue in 2020 - especially considering that they have millions still in their coffers!
Furthermore, Lisk understands the importance of attracting developers to its platform as they help to develop the entire Lisk ecosystem with their projects. The Lisk constantly make upgrades to their SDK to make it easier for developers to code on Lisk.
For these combined reasons, I believe that Lisk can increase by a total of 330%, from the current trading price, to reach my target of $3.00 at some point in 2020.
In this article, I’ll firstly cover a range of topics that I believe will influence LISK in reaching my $3.00 target during 2020 and then analyze LISK on the long term daily charts to highlight some areas of resistance on the way toward the target.
Lisk - THE Platform For Developers To Deploy dApps
Another goal for the Lisk team is to create a sustainable platform that is sustained through increased tx speeds, increase network bandwidth and reduce the load on the main chain. Lisk achieves this through the implementation of “Sidechains”, which let programmers launch their own tokens, with their very own blockchains, and integrate them within the Lisk mainchain. These sidechains also make it easy for these dApps to scale without them clogging up the mainchain network, leading to efficient scalability over the long run.
Lisk also achieves very high throughput by using a DPoS consensus algorithm system that uses 101 of the top mainchain delegates that are voted in to maintain and secure the mainchain for Lisk. They are responsible for validating all transactions on Lisk and producing new blocks and, in turn, the are all rewarded for their help. Delegates are voted in by Lisk holders and can also help to maintain sidechains whilst waiting to be voted in as a mainchain delegate.
Lisk truly has created a fascinating platform for developers to come and deploy their decentralized applications on top of. To find out more detail about the Lisk project itself, take a look at this great article covering Lisk.
Lisk Are Serious About Attracting Developers
Taking matters further, Lisk recently announced that the SDK 3.0 release is imminent as all of the main features have now completed development and are now in the QA phase. Lisk SDK 3.0 is set to feature a host of Lisk Improvement Proposals which include LIP-0004, an update to introduce a robust peer selection and banning mechanism, and LIP-00014 which introduces the BFT consensus protocol to the SDK.
Lisk Transparent Development Helps Confidence
In comparison with other projects, Lisk offers a very transparent method to keep up-to-date with their development progress. The team provide a very clear roadmap which details all ongoing tasks as well as recently completed tasks;
These tasks are broken down into further individual details on the roadmap.
Furthermore, analyzing data from Santiment, we can instantly see that Development Activity for the Lisk project has remained strong throughout the entire year - showing that the team is continuously active rather than just “weekend developers”.
New Website Shows Forward Thinking
At the end of October, Lisk unveiled a fresh new website in collaboration with the design agency Netguru. The whole idea of the new website is to make Lisk more accessible to a wider audience and support a rapidly growing Lisk ecosystem.
Personally, I love the new look! I think it brings Lisk in line with its vision to be accessible to everybody, but more specifically, developers!
Lisk Foundation Still Has Funds In The Vault
The latest financial release from the Lisk Foundation certainly does show that Lisk has plenty of funding to continue well into 2020 and further! This brings confidence to investors as they will gain comfort in knowing that the team has enough funding to continue development regardless of future market scenarios.
A look into the release shows that the Lisk Foundation still has well over 3 million Euros, over 3,000 Bitcoin, and close to 8 million LSK coins. In total, this equates to a rough estimate well over $35 million for the Lisk Foundation to continue development.
Lisk (LISK) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Inspecting the long term daily chart above for LISK, we can immediately notice the dire situation for the market during 2019. The cryptocurrency did start the year off well, however, this can largely be attributed to the fact that the entire industry was surging during this time. From February through June, LISK had seen a 100% price surge as it rose into the $2.20 resistance level.
This level of resistance was provided by the 200-day EMA and LISK was unable to overcome this level after many attempts during May and June. Toward the end of June, LISK rolled over and started to fall at a startling rate as it reached the 2019 lows of around $1.10 in July alone.
After a short rebound into the $1.70 level, LISK continued its decline and eventually broke beneath the 2019 lows in September creating fresh lows not seen since June 2017. As October progressed, LISK continued lower until finding support at $0.662 which is provided by a downside 1.414 Fibonacci Extension level.
LISK rebounded at this support but went on to meet resistance at $0.81 and has been unable to break above this level, so far, in November 2019.
Are We Bullish Or Bearish (as of November 2019)?
As of November 2019, we are trapped in a bearish trending market. For this bearish trending market to continue, we would need to see price action fall further lower and break beneath the October support at $0.66.
Luckily, I still think that LISK can easily reach $3.00 in 2020 EVEN if it sinks beneath the $0.66 support in the closing months of 2019. This is because there is plenty of support toward the downside which should allow LISK to rebound in 2020.
The first levels of support beneath $0.66 are expected at $0.65 and $0.60. Beneath this, we can expect strong support at $0.56, $0.50, and $0.44.
For this market to be considered as bullish, in the short term, we would need to see LISK rise and break above the resistance at $0.81. For this market to be considered as bullish in the long term, we would need to see LISK rise and break above the $1.25 level.
Where Is The Resistance On The Way Up TO $3.00?
The first level of resistance to penetrate is located at the $0.81 level. Above this, resistance can be expected at the $1.00 region which is further strengthened by the 100-day EMA and the bearish .236 Fibonacci Retracement level.
Above this, higher resistance can be found at $1.24 (bearish .382 Fib Retracement) and $1.28 (200-day EMA). If the buyers continue higher, added resistance is found at $1.43 (bearish .5 Fib Retracement), $1.50, $1.61 (bearish .619 Fib Retracement), and $1.80. Following this, strong resistance is expected at $2.02 (bearish .886 Fib Retracement) and $2.20.
If the bulls can CLOSE above the $2.20 resistance level, higher resistance is expected at $2.40, $2.50 (1.272 Fibonacci Extension level), and $2.66 (1.414 Fibonacci Extension level). Above this, the buyers will have to penetrate above resistance located at $2.89 (1.618 Fibonacci Extension level) before being free to make an attempt at my 2020 target of $3.00.
For these reasons, I strongly believe that LISK can increase by 300% from the current price and reach the $3.00 level at some point in 2020 - EVEN if it falls a little further lower over the coming weeks!
LISK will firstly need to overcome resistance at $0.81 and $1.00 before being able to power higher. Resistance is then expected at $1.24, $1.50, $1.61, $1.80, and $2.00. If the buying continues, LISK will need to break above resistance at $2.50, $2.66, and $2.89 before being free to make an attempt at my 2020 target of $3.00.