Lisk (LSK/USD) Analysis January 19, 2018
Lisk prices don’t want to be left behind and like other high cap coins, the pressure is south. I didn’t expect prices correction of last week’s over-valuation to be this fast and volatile but look at what is happening!
From the look of things, our first support level marked by the second Fibonacci extension level was broken as sellers made a statement.
They are now eyeing the $14, or the first extension level but before they test the support and complete the retest phase, buyers should be relieved. Why? Well, this is normal and if prices actually go and say breach $14, the middle BB will be just around the corner and could perhaps offer some support.
If sellers are still rapid, then $7 will be the most likely destination and a notable erosion of Lisk value.
In the daily chart, everybody can see that bear pressure is so strong the break below the middle BB was confirmed on January 16.
As we have seen in the weekly chart, strong support is expect at around $14 and the middle BB. In line with that projection, our previous resistance now support based on December 17 2017 break out stands at $12. From the daily chart, $12 is November 11 highs and December 17 close above triggered the recent Lisk rally which peaked at $42.
We may as well say this is the refined support meaning the $2 range between $12, $14 (1st Fibonacci extension level in weekly chart) and the middle BB is a strong support zone which if broken can be catastrophic for LSK valuation. However, there is a reprieve. As we can see, yesterday’s candlestick ended as a bull and gravitated towards the middle BB. We are yet to see what will happen today but any close above $25 will be encouraging.
In our entry chart, only two levels concerns me and if they are broken, I’m net bull from next week. These are the middle BB and the main resistance trend line connecting January 9 and 15 highs.
Any surge in prices above these level may trigger bull pressure upon confirmation.
Of course, given the trend, any rebound from around the 2nd Fibonacci extension level in the weekly chart and we may soon find ourselves at $14 as bears shift gears and aim at $7.
