Fri. Aug 19th, 2022

The cryptocurrency market is again under the pressure and it is important to say that the price of Bitcoin is very close to $8 000. The last several months have been very negative for the cryptocurrency market, all major cryptocurrencies have weakened and the price of Lisk was also pressured by this situation. Lisk is a platform for creating decentralized applications, Lisk aims to be user-friendly and is geared towards mass adoption. This blockchain application platform offers an all-round solution for Node.js and JavaScript developers to deploy their own blockchain applications. To help raise funds to finance the project, Lisk launched its own digital token (LSK) in the 2016 year. As a crypto-currency, Lisk is very similar to all other cryptos because it provides a decentralized payment system and digital money network. Positive thing is that Lisk uses JavaScript as a programming language, which is popular among tech giants such as Microsoft and Google. The future of this cryptocurrency is connected with the success of the Lisk network and the adoption of its technology by programmers, developers, and start-ups. This is a highly speculative cryptocurrency and still very risky but lots of analysts agree that LSK is currently at a point where it has the potential to make very big gains. Many currently used coins have limited support, outside of major crypto-exchanges and this is also the situation with Lisk. Because of that, I would recommend to everybody to be careful and to invest a small sum of money in this cryptocurrency. In the chart below (a period from October 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $1, $1.5 and $2, $0.7 and $0.6 represent the current support levels.

We can also notice that the price of Lisk has weakened from $2 to $0.65 in less than 180 days and the current recovery could not be considered the end of this trend. The cryptocurrency market volatility is also one of the things that scares investors away and this is one of the reasons why the market is under the pressure. Lisk remains in the bearish phase but if the price advances above $1 it could be a good sign of the trend reversal. If the price drops below $0.6 strong support that would be a strong “SELL” signal and the open way to $0.5.

Recommendation: This is a highly speculative cryptocurrency and still very risky but LSK has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. Yes, it is true that the price could fall even more but the current price of LSK stands around $0.77 and this is very close to strong support which stands at $0.6. If the price jumps above $1 that could be a very good opportunity for the short term traders, short-term traders can put the stop-loss at $0.8 and take profit at $1.2 or above.

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.