$LSK: ReTesting Resistance
Lisk (LSK) is acting somewhat like the last article featuring DASH. DASH was falling in a more prominent descending wedge whereas LSK is in a clearly defined channel. Either-way the result is looking much the same…downwards price action, hard floor, and then attack resistance. The level at which this temporary bottom formed is important to me as it landed perfectly at the classic mathematical cryptocentric retrace zone. Though it has been not acting very bullish there is a lot of money behind this market. Once we see a clear breakout from the short term and long term downtrend the upside push is going to be fierce. Hard to imagine it go up 10x like ETH, but the potential for a 2-4x is great.
The daily chart is right up against resistance and so is the 1H. It looks like the safest long here is a break above about 0.00041 as that area is both the horizontal and sloping resistance breakout level. If it breaks out I will be cautious of a throwback to support/resistance, and if that order block providing support holds then LSK should be ready for more bullish action.
A failure to breakout will demand a short position. If the support block breaks down that would be a good place to add to your short. If said breakdown were to occur then look towards the bottom of the channel for the next support zone. This is a probable consolidation zone due to the fact that the support trend is inside the second, and final, mathematical retrace zone most often seen in crypto. Keep your eyes on this trade, it has been a long time since the ICO launch and once it breaks out you will get left behind.
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