- Lisk price went parabolic on Thursday as demand for the coin rose.
- The rally happened as some whales made big moves in the market.
Lisk price bounced back on Thursday as investors bought the dip in the coin. It rose to a high of $1.2718, which was the highest point since August 22. At its peak, Lisk was up by about 32% from its lowest level this year.
What is Lisk and why is it rising?
Lisk is a blockchain application platform that makes it possible for developers to build decentralized applications. It is an open-source platform that uses the delegated proof-of-stake (dPOS) technology that is usually more scalable and energy efficient.
Lisk operates in one of the most competitive industries in the world. Some of its biggest competitors are platforms like Ethereum, Solana, Avalanche, Velas, and Kadena.
Still, Lisk has managed to attract several developers in its ecosystem. Some of the most notable apps in Lisk are Eevty, which is a decentralized social media NFT platform, Colecti, an NFT marketplace, and Kalipo. Other apps in its ecosystem are Identty, Faet, and RGB.
Learn more about how to buy Lisk.
However, because of the soaring competition and its limited grant program, Lisk has not managed to attract a major developer in the scale of Aave and Uniswap. At the same time a quick look at its analytics page shows that the number of transactions in its ecosystem has dropped by 319% from last month even though volume has jumped. The number of staked LSK token has risen to over 51.3 million.
It is unclear why Lisk price went parabolic on Thursday, A quick look shows that the number of whale transactions in the network has risen in the past few days. For example, two whales transferred LSK token worth over $104k each on Thursday. Another moved LSKs worth over $84k.
Lisk price prediction
The daily chart shows that the LSK price has been in an overall bearish trend in the past few months. It crashed from an all-time high of $11.52 in May 2021 and moved to a low of $0.8332 in May this year.
Recently, the coin has been attempting to have a comeback, which has stalled at $1.8826. The coin has moved to the 25-day and 50-day moving averages. At the same time, the Awesome Oscillator has moved below the neutral level.
Therefore, while Lisk rose sharply on Friday, there are no signs of a new bullish trend. Therefore, there is a likelihood that the coin will remain in a tight range for a while. If this happens, a drop back to $1 cannot be ruled out.
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