Is Lisk (LSK) buy opportunity after the current dip?

Lisk LSK/USD has weakened from $1.88 to $1 since August 01, 2022, and the current price stands at $1.06.

The cryptocurrency market continues to be under pressure, and according to Brian Brooks, CEO of the crypto infrastructure provider Bitfury, the Federal Reserve’s approach to tackling inflation is a major reason for the current downturn.

Lisk is a blockchain application platform

Lisk is a blockchain application platform that enables developers to create custom dapps without the need for learning new coding languages.

Developers can write programs using the Javascript and Typescript languages, while the modular design of the Lisk enables developers to realize any kind of blockchain technology use-case.

Developers can create, build and deploy their own sidechain connected to Lisk’s mainchain, but it is also important to say that anyone can interact with this platform by managing their LSK tokens and voting in the consensus algorithm through Lisk’s wallets.

Lisk products are developed completely in open source with the goal to make blockchain technology accessible for a future in which everyone benefits from it.

The ultimate goal of Lisk is to bring talents into the blockchain industry by enabling them to participate in building the decentralized future with Lisk’s products, whether they are a technical person or not.

LSK is the utility token of the Lisk blockchain; it is used by the network to power dapps, and it allows users to participate in the governance.

LSK is primarily used to pay for the network fees for the different types of transactions, but users should consider that the Lisk network utilizes a dynamic fee system, which keeps fees considerably low.

Technically looking, LSK remains under pressure, the prices of most public cryptocurrencies have collapsed in a relatively short period, and according to Brian Brooks, CEO of the crypto infrastructure provider Bitfury, the Federal Reserve’s approach to tackling inflation is a major reason for the current downturn. Brian Brooks added:

Inflation has been an issue for numerous countries for a while now. The more the market expects tough policy from the Fed, the more people think the Fed is going to keep an aggressive posture, and that would tend to harm the cryptocurrency market.

Technical analysis

Data source: tradingview.com

Lisk (LSK) currently trades around the $1.06 level, and it would be a sell signal if the price falls below important support that stands at $1. The next price target could be around $0.90 or even $0.80; still, if the price jumps above $1.50, we have the open way to $1.70.

Summary

The cryptocurrency market remains under pressure, the price of LSK can weaken even more in the upcoming days, and probably it is not the best moment to buy this cryptocurrency. The uncertainty because of the Russian-Ukrainian war, high inflation, and the rising risks of the recession continue to keep investors in a negative mood.

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