(LSK/BTC) Will Need Strong Support If It’s To Break Off The Bottom By Cryptovest

Lisk Technical Analysis: (LSK/BTC) Will Need Strong Support If It’s To Break Off The Bottom

Lisk (LSK) is finally beginning to make a break out of a long bearish descent, after failing to capture attention, or significant investment, from the crypto-community with its rebranding launch last month. Now however, support appears to be amassing in response to the new Lisk Core 1.0.0 open beta announcement, that goes live tomorrow.

Could this be the turning point for LSK to invigorate its deflated community and get it back above $30? Or will day traders be looking to pump and dump this coin, as and other assets regain prominence in the market?Diving into the 4hr chart above, we can see that LSK found good support along the 0.786 fib level at 103,000 Sats ($7.30 at current market value). After some rip sawing candles along the bottom support we saw a sudden bull run break strongly above the 130,000 Sats resistance ($9.21). The uptrend was short-lived and hastily retreated back to the channel, as the first wave met strong resistance from LSK holders looking to withdraw their positions for better performing assets in the market.

The second wave of support also failed to retest the same level two more times as bearish opposition continued to contest the breakout, quashing hopes of an early retracement back up to the 0.618 fib level.

Above we can see however, that a bullish pennant formed during this struggle which gave us confirmation that the bulls were starting to amass again.

Looking at the current movement, momentum from the buyers is looking a little laboured on the MACD indicator, with a slight crossing above the signal line. Though this is the first time we’ve seen LSK above the center in over 2 weeks, both moving averages are oscillating between each other which tells us that there’s still uncertainty in the current price action.

We’re still waiting on a convergence between the 50 and 200 exponential moving averages (EMAs) to signal a ‘golden crossover’ that would give us a much stronger indication of a bullish reversal.

The Relative Strength Index is still trending towards the upper channel, but isn’t strong enough to give us any clear assurance of a continuation.

Looking at the Ichimoku indicator below, we can see Senkou Span A is rising thinly above Span B so we can assume that there’s still potential for the breakout to fail. What we’re looking for is a greater distance between these two points to denote a worthwhile entry point to buy into LSK.

The projected support (yellow cloud) ahead of the trend sits below the resisting level, inside the red dotted channel. This projection is also supplemented by thin trading volumes shown beneath it, allowing us to assume that, at least for now, there will be more activity inside the channel before any bullishness continues.

Lisk (LSK) Price Prediction

At the time of writing, LSK is up 4.76% against BTC. While support from the recent announcement is exciting news for many LSK holders looking to recover some of their losses from the recent downtrend, it’s come at an inconvenient time as BTC begins to move ahead as well.

Looking at the indicators we can see some uncertainty still within the current price action, which will put off some investors from rallying behind the reversing movement just yet.

It’s therefore likely that we’ll see the price remain within the channel until a new wave of support can take LSK beyond again.

We’d like to see the next run breach the 0.618 fib level at 155,700 Sats in order to confirm a promising reversal, but much stronger support will be needed in the coming days to assure this.

This will no doubt add extra pressure on Lisk’s new Core 1.0.0 launch tomorrow, especially after the shock bear market that befell them during their last big announcement. Lets hope this time they manage to prove themselves to the crypto-community and make a return back into the top 20.

This article appeared first on Cryptovest

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