Lisk (LSK/USD) Analysis December 23, 2017
I believe that platforms like Lisk, Stratis, Ethereum, NEO and Waves are meant for the future. Decentralization and blockchain is not going anywhere anytime soon. Okay, say maybe they take down the internet which I don’t think they will.
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That’s my insurance. See, this year alone and at current prices, Lisk has grown 17,500% or 17.5 times. For comparison purposes, S&P is at 10%. Even despite this, this platform is grossly undervalued. Buy-hold is the long term plan and that is why retracements like these are welcomed because buyers can get in at better prices.
As per our projection, the ideal take profit level at $21.5 was hit and if you have not being following this, then this second take profit level is projected using Fibonacci extension levels from Q1 and 3 high lows. The middle BB will always remain our support line in days ahead especially is there is a noticeable decline below our immediate support marked by the 1.618 extension and this week’s lows at $13.
Do you notice something strange about December 21 candlestick? Ok, it’s extraordinarily bullish but it almost closed above the upper BB. This very reason is why I’m unfazed by today’s lower lows even with a stochastic sell signal in place.
If anything, equilibrium must be achieved and the best way to do so is by prices testing the middle BB. Lisk buyers are still pushing prices higher-check those long lower wicks and of course we cannot discount the upper BB banding.
All I can say is this potentially short bear pressure will be in vain if they are not confirmed by tomorrow.
The sell signal in progress in the daily chart is even clearer in the 4HR chart. We have these beautiful lower lows relative to the upper BB complete with a double bar bear reversal candlesticks turning from the overbought territory of the stochastics.
Already there is a sell signal and from Fibonacci extension drawn from last week’s high lows, it’s clear that the second TP at around $28 was almost hit before prices reversed. In my opinion, if prices close below the middle BB then I expect our potential reversal to be at around $14 which is last week’s highs.
If bears push further, then area between 38.2% and 61.8% can be considered as potential reversal points especially if a stochastic buy signal is printed.