How did the Layer 2 upgrade and the burn of 100 million tokens map out the price chart? 📊

Away from the noise, let’s dive into the technical data that moved the LSK coin over the past 24 hours, achieving an increase of more than 45% and reaching a peak of 0.4503$.

Here is the pure technical analysis of what happened:

🔹 First: Core factors at the project level (Fundamentals)

• Migration to Layer 2: The project is set to move to the second layer through OP Stack technology on the Ethereum network. The bridge deadline is October 31, a crucial technical milestone that increases scalability and smart-contract interaction.

• Supply Shock: 100 million LSK tokens have been permanently burned. Technically, this reduced the total available supply in the market, creating direct buy-side pressure on the order book.

🔹 Second: Technical Chart Reading (Technical Analysis) - 1-hour timeframe

• Price Action: The price rebounded from the $0.2920 low and then sharply broke through resistance, marking a local high at $0.4503. Currently, the price is looking for a balance zone around $0.3955.

• Liquidity and Volume (Volume): A huge trading volume of 86.54 million LSK, confirming the legitimacy of the move rather than just a fake candle.

• Moving Averages (MAs): The price is still trading above the short- and medium-term moving averages. We note:

· MA(7) at 0.3957 (represents a temporary resistance).

· MA(25) at 0.3667 (dynamic support).

· MA(99) at 0.3552 (major support).

• Supertrend indicator: It stands at 0.3383, meaning the overall trend on this timeframe is still bullish as long as the price remains above it.

🔹 Third: Momentum Indicators

• RSI (6): It is currently reading 53.64. Technically, this means the price has exited the overbought zone it saw at the peak, giving the price room to breathe before any next move.

• MACD: A positive crossover accompanied by an increase in the histogram, reflecting a shift in momentum in favor of buyers.

• Average buy and sell prices: The data indicates an average buy price of $0.3905 and an average sell price of $0.3860, suggesting a fierce consolidation currently taking place around these levels.