Lisk Analysis – Waiting for the breakout from the rectangle

Today Bitcoin is heading higher, most of the big cryptos are aiming north too but there are some smaller players, which do not have optimistic situation on the charts. One of the example is Lisk, which is very close to the mid-term lows. Was that weakness predictable? Let us look on our previous analysis about this instrument, which we wrote on the 4th of July:

“LSK created a bullish reversal pattern – double bottom (yellow). Formation is already active as the neckline (red) was broken two days ago. The closest target for now is the 6,7 USD (blue). „

As You can see, back in that day, we were bullish and we were looking forward for an upswing. It did not happen and instead of going north, price stuck inside of the sideways trend – a rectangle closed between the resistance on the grey area (6 USD) and the support on the yellow area (4,7 USD).

Currently, the price is testing the lower line of this formation, which creates a interesting buying opportunity. I would not go there though. I cannot see any demand here and it looks like the price is much closer to the breakout and to make new lows.