Lisk / USD Technical Analysis: Bulls Staging A Coup
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- Lisk is bullish in the short-term with a large inverted head and shoulders pattern present on the four-hour time frame
- Short-term technical indicators are signaling a possible near-term correction lower
- The medium-term outlook is neutral, with the cryptocurrency close to a bullish breakout on the daily time frame
Lisk / USD Short-term price analysis
In the short-term, Lisk is bullish with the recent rally creating a bullish inverted head and shoulders pattern on the four-hour time frame.
The cryptocurrency appears to be correcting lower after buyers failed to rally price above the neckline of the bullish pattern.
The Lisk / USD pair will retain its short-term bullish bias while price continues to trade above its 200-period moving average on the four-hour time frame.
LSK / USD H4 Chart (Source: TradingView)
Pattern Watch
A sustained break above the neckline of the inverted head and shoulders pattern would see the cryptocurrency starting to explode to the upside.
MACD Indicator
The MACD indicator is turning lower on the four-hour time frame and is generating a bearish signal.
RSI Indicator
The Relative Strength Index is turning lower on the four-hour time frame and is starting to correct from overbought territory.
Lisk / USD Medium-term price analysis
In the medium-term, Lisk has a neutral trading bias, with the recent rally in the cryptocurrency changing the Lisk / USD pair’s outlook on the daily time frame chart.
A series of bullish inverted head and shoulders patterns are now visible on the daily time frame; a break above the neckline of the larger pattern would likely trigger a significant move higher in the Lisk / USD pair.
Technical indicators on the daily time frame are slightly overbought and have scope to correct lower in the medium-term.
LSK / USD Daily Chart (Source: TradingView)
Pattern Watch
Failure to break below the Lisk / USD pair’s former yearly trading low has created a bullish double-bottom pattern formation on the daily time frame.
MACD Indicator
The MACD indicator remains bullish on the daily time frame and currently shows no clear price divergence.
RSI Indicator
The Relative Strength Index is starting to correct from extremely overbought conditions on the daily time frame.
Conclusion
Lisk has a potential to stage a major upside technical breakout in both the short and medium-term, due to the cryptocurrency’s bullish technicals on the four-hour and daily time frames.
If a strong bullish breakout does occur, the Lisk / USD pair is likely to rally towards its key 200-day moving average.
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