In my opinion, I really think there is a wonderful buy opportunity for this cryptocurrency after the dump is over. You see, last week Lisk announced in a meeting held in Berlin that they will be rebranding in February 20, 2018. The market reacted negatively by dumping it. Well, from what we can learn from NEO, rebranding isn’t a bad thing and after all it’s just a name change with no tweaks of the underlying technology.
Another concern linked to this depreciation over the past 10 days or so is this “theory” that LSK is controlled by few individuals often referred to as whales. For some reason, they claim that these guys have big positions in both LSK and USD and have been actively manipulating the crypto market using bots from last week. The bad thing is that depreciation in one exchange is contagious and prices in other exchanges will follow suit to avoid an arbitrage situation.
However, from a technical perspective, we shall watch that support line at around $6.42. USD bears tested that level but there’s clear price rejection as the candlestick has some long lower wick. It is obvious that we are in a strong uptrend and it doesn’t make sense to keep selling even if we have an “induced” double bar reversal pattern in the weekly chart. LSK bulls are already rejecting this and compared to last week, the selloff isn’t strong.
In the daily chart, we note a bearish divergence which lead to this price trading at current prices. However, in the past 7 days, price action has been within a tight congestion and moving within a $3 range marked by November 29 and 30 highs of $9.2 and lows of $6.2.
If we go on and paste a Fibonacci retracement tool from November 2 and 16 high-lows then we realize that this congestion with a stochastic buy signal is on at the 61.8% retracement level. Additionally, we buy momentum is strong with diverging stochastics signal accompanied by candlesticks with long lower wicks.
As in the daily chart and the weekly chart, we have a stochastic buy signal in the 4HR chart.
Trading this will be simple since these buy signals are common across all time frames under our consideration.
We just wait for a strong close above resistance trend line and initiate a long position. Our ideal target will be November 16 highs of $11.5