Lisk (LSK) Technical Analysis: Needs To Break Above 1D Resisting Kumo Cloud, Bulls Look Weak
Lisk looked promising to follow suit with Stratis and Waves yesterday after the asset surged over 17% against BTC. News that the asset had been listed on Singapore-based exchange ABCC appeared to be the main driver for the new bullish support - carrying the asset from 35,650 Sats to a height of 41,939 Sats before correcting.
Going into today, we can see that LSK has struggled to hold onto yesterday’s double-digit gains, with the asset currently trading down 3.17% against BTC. The cause of this can likely be attributed to a typical market correction, with Bitcoin’s bullish recovery back over $4,000 today drawing investors away from the altcoin market, or intraday LSK traders dumping their bags after the exchange listing hype died down. Either way, in order to secure long-term bullish support, LSK will likely need to conjure up another bull rally in the short-term to help it break through the 1D resisting kumo cloud on the Ichimoku indicator. This will provide a strong bullish reversal signal that should help attract new longer-term investors into this project.
Diving into the 1D LSK/BTC chart, we can see that LSK was tracking inside of a falling wedge shape from August 25 to December 3. After establishing the bottom at around 32,405 Sats, the asset began traveling sideways and was able to exit out of the falling wedge, despite the ongoing heavy bear market at that time. This was a sign to many that LSK bears had finally exhausted themselves, leaving LSK down a massive -95.55% from its all-time high in January at $34.
From there, LSK continued to oscillate tightly inside a narrow range between 33,635 Sats and 35,600 Sats (green area) until December 18, when bullish traders eventually re-entered the market.
Looking at the current price action more closely over 2H candles, we can see a number of indicators suggest that the trend is weakening and turning bearish:
-The indicator line on the RSI has fallen from the overbought region at 87% down well into the middle of the index channel at around 56%, and showing signs that it will continue falling in the short-term.
-On the MACD indicator, we now have a bearish divergence between the 12MA and the 26MA with red selling candles appearing on the histogram below the signal line.
-The Chaikin Money Flow indicator is showing a clear decline, with the indicator line sliding further away from the zero line above.
-The Aroon Up line is now about to bearishly diverge below the Aroon Down line, which is indicative of a reversing trend.
-Parabolic SAR dots are also now appearing above the price action, which further confirms that the trend is turning bearish.
From this, we should expect the asset to continue correcting until either another wave of strong bullish momentum arrives or bearish traders take back control of the asset.
Lisk (LSK) Price Targets
All ROIs are calculated from the asset’s current value at 38,733 Sats (AToW).
PT1: 42,100 Sats (8.69% ROI)
PT2: 45,000 Sats (16.18% ROI)
S1: 37,000 Sats (-4.47%)
S2: 33,635 Sats (-13.16%)