Lisk (LSK) Reaches Rock Bottom, Presents Significant Upside Potential

Lisk (LSK) Reaches Rock Bottom, Presents Significant Upside Potential

Lisk (LSK) is starting to become a soft target for crypto bears. Just a quick glance at the weekly LSK/USD chart shows how the bears have completely obliterated the bullish resolve. If this were happening on Wall Street, a lot of people would be watching Lisk (LSK) and trying to wrap their heads around the possible reasons for this extra bearish momentum. Most of the time, when something like this happens to a stock on the stock market it is either a newly emerging promising stock or a useless old dinosaur that investors are trying to get rid of. However, when something like this happens during bearish times to a cryptocurrency project that has strong fundamentals, it raises a lot more questions.

If you are considering investing in Lisk (LSK), you might want to know what those reasons could be. If the reason a cryptocurrency is falling is because its team members or investors in the company are selling tokens, you do not want to look at any other reasons. This should be a deal breaker for you because if a team or its direct investors does not believe in the project, that project has no future potential. In the case of Lisk (LSK) we know that insiders seriously believe in their project and are not going to dump their tokens. Besides, the majority of tokens are owned by the general public not the team members. If the general public keeps dumping, that should not be a cause for concern because retail investors are generally wrong most of the time. They buy when they should sell and they sell when they should buy.

Chart for LSK/BTC (1W)

There are cryptocurrencies like ZCash (ZEC), Ethereum Classic (ETC) and Monero (XMR) which are also medium cap coins like Lisk (LSK) but one can short them on exchanges like Bitmex or Bitfinex. This means that investors can put extra bearish pressure on such coins. However, Lisk (LSK) has no such problem. It cannot be shorted on most exchanges. It can only be bought and sold and that too in very small amounts on exchanges considering the volume has almost dried up. So, the only plausible reason for this extra bearish behavior could be deliberate manipulation. Unlike Bitcoin (BTC) or Ethereum (ETH), you cannot buy Lisk (LSK) over the counter. So, if you are a whale and you really want Lisk (LSK), you have to buy it on exchanges.

Now, how do you buy a coin on different exchanges without having other people follow your trail? The best way to do is to make that coin seem like a sh*tcoin. So, every time the rest of the market goes up 5%, you dump your Lisk (LSK) token on exchanges. If retail traders see this consistently over a certain period of time, they are convinced that the token they are holding (LSK) is definitely a sh*tcoin and that they would be better off buying something else. That is when those unsuspecting retail traders sell and the whale gladly picks up their coins.

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