Over the past period, Litecoin (LTC) has seen a noticeable drop in its volatility. This reduction is particularly notable when considering the narrowing of its 2-month Bollinger Bands (BB). A crypto analyst has pointed out this unusual tightness as a significant observation. The current technical structure of Litecoin suggests a powerful possibility for a sharp upward surge, or a parabolic breakout. The price level of $130 is being identified as a crucial barrier to watch for this potential event.
Narrow Bollinger Bands To Trigger Litecoin Breakout
crypto expert Tony Severino recently posted a chart on X (previously Twitter) displaying Litecoin’s price movements over a bi-monthly period, utilizing Bollinger Bands as a technical analysis tool to gauge the cryptocurrency’s price fluctuations. These Bollinger Bands work by drawing a upper and lower band around a Moving Average (MA), which serves as a reference line for market volatility analysis.
For Litecoin, Severino points out that the 2-Moving Average Bollinger Band width is extremely small, suggesting very little or significantly reduced volatility in its price movements. Typically, Bollinger Bands widen during high volatility and narrow during low volatility periods.
Severino’s Litecoin chart shows three significant lines: an upper Bollinger Band (red), a midline or basis line (blue), and a lower band within a green area. At present, the candlesticks for Litecoin are located above the basis line at around $83.3. This position suggests that there might be an upcoming surge in bullish movement.
If Litecoin’s price keeps rising and surpasses the upper boundary around $130 in its Bollinger Band, Severino suggests this could lead to increased volatility and a dramatic price surge, possibly marking a breakout. Given past patterns, a very tight Bollinger Band may signal an impending bullish trend reversal following a phase of consolidation.
According to Severino’s assessment, the upper boundary at $130 stands out as an important barrier for Litecoin. If this level is consistently breached on a larger timeframe, it could lead to further price increases, possibly taking Litecoin well beyond its current value of approximately $111.5.
As a researcher examining the cryptocurrency market, I’ve noticed that Litecoin has seen some encouraging growth. Over the last day, it’s climbed by around 6.14%. Over the past week, this notable digital currency has also experienced an uptick of roughly 11.7% to its current standing. To break through the critical resistance at $130, Litecoin needs to surge by approximately 18% from its current market value.
Litecoin Rally Predicted, Targets 38% Upside
Based on Mike’s crypto analysis, it appears that Litecoin is gearing up for a substantial surge towards a new peak in price. He predicts that once the breakout occurs at around $106, the cryptocurrency could experience a 38% price increase, taking it to an optimistic bullish target of approximately $146.67.
According to the analyst’s price graph, Litecoin seems to have surpassed the $102 barrier and is moving towards its next notable resistance at approximately $122.77. The chart also underscores horizontal markings that pinpoint crucial resistance points for Litecoin.
Mike has identified a crucial support level at approximately $99.91 for Litecoin, which could serve as a protective barrier during a market decline. If Litecoin experiences a substantial price fall below this support, the analyst suggests that the following prices – $86.97 and $74.43 – may provide additional support in the event of further drops.
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2025-01-05 04:16