The Altcoin market seems to be finally waking up from the deep bear market slumber, with ETH breaking out of the symmetrical triangle and posting double digit gains (Reference for pattern here), and as the market looks strong, let's have a look at an interesting trade setup.
Today I'll be covering a brief Technical analysis about Lisk ($LSK).
At the time of writing, Lisk is up 3.65% in the last 24 hours, and the weekly candle looks pretty strong. There are a lot of exciting events coming up in the next couple of months, which will make this a very good candidate for a typical "Sell the news" asset.
Point to note: Lisk has been on a steady uptrend since March without any major corrections, so, please assess the risk properly before entering the trade, in case it starts correcting.
Here's a disclaimer, as usual:
I'm not a certified financial advisor, and even though I've been trading for quite a few years, I urge people reading this, and my other posts to #DYOR (Do your own research) before taking any decisions!
Of course I'm going to help you out if you have some queries/doubts, so feel free to let me know in the comments, or on Twitter :)
In case you want to trade Lisk, I'd recommend you to have a look at Binance.
Note: I've added my affiliate link and you will get a 10% discount on fees, but it's up to you if you want to use it.
Chart: LSK/USD, 1D
Link: https://www.tradingview.com/x/Z5QGCFPi/
Points to note:
- It is attempting to break above the already existing uptrend channel (which is a bullish signal)
- RSI is making higher highs steadily, without showing any divergences
- Supertrend Indicator is also bullish, and is not showing any signs of bearish signals (though it is a passive signal, and should be used for confirmation, IMO)
Let's have a look at the chart with respect to Bitcoin.
Chart: LSK/BTC, 1D
Link: https://www.tradingview.com/x/dazylWIs/
Points to note:
- Things appear to be bullish here as well, with the LSK/BTC pair breaking above the falling wedge pattern, doing a retest, and again going up.
- Structural higher high on daily
- Supertrend just printed a green cross (confirming trend change)
- RSI is respecting price action.
Note: I personally believe it will be safe to allocate 4-5% of your capital (depending on your risk appetite and hold for sometime, with ladder buys till $1.36-ish zone. (or around 1301 satoshis if you are looking at the BTC charts)
On the other hand, you can set first target around $2.4-2.8, as there are no major resistances on the way up, until that zone. (Around 2095 sats as first target, 2800 as second target)
In terms of USD pair, In any case a daily candle closes above $3, it will be very much bullish in nature, and you can update stoploss accordingly.
But these are just suggestions, executions are up to you :D
Dominance:
Having said these, let's look at the dominance charts for additional confirmation.
The other day, I posted about why the dominance isn't going down in spite of these DeFi coins pumping like crazy
If you want to know why I'm talking about dominance again, here,
This is because Lisk is barely traded on ETH, and isn't necessarily a hyped up DeFi coin, so the ETH dominance will be insignificant. But Bitcoin dominance is significant, as a sizable part is traded on BTC pair, daily.
Chart: BTC.D, 4H
Link: https://www.tradingview.com/x/fbm90f3p/
At the time of writing, BTC Dominance seemed to have broken down from a major support, and the fact that altcoins are not slowing down, only means that this thing may continue further.
In that case, do have a look at all the midcaps, as most will be doing well, but only some coins will outperform others.
Zooming out on the weekly, we can see that the Blue region was a major support:
A weekly close around 60 will definitely be bullish for most altcoins
#DYOR, Happy trading, stay safe
Edit:
I thought of sharing the upcoming news here, for reference:
Source
The halving news is pretty bullish for mid term IMO
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