Litecoin (LTC) A crypto analyst is experiencing a significant drop in volatility, with its bi-monthly (2M) Bollinger Bands (BB) highlighting an unusual tightness. According to an analyst, Litecoin’s current technical setup points to a strong Probability of parabolic breakoutA critical resistance zone is emerging with the $130 price mark.
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Tight Bollinger Bands to Trigger Litecoin Breakout
Renowned crypto analyst Tony Severino shared A price chart on X (formerly Twitter) that shows Litecoin’s price action on a bi-monthly time frame applies Bollinger Bands as a technical indicator to measure. The price volatility of a cryptocurrency. Bollinger bands examine market volatility by plotting an upper and lower band around a moving average (MA), which serves as a baseline.
In the case of Litecoin, Severino indicated that 2 million of the cryptocurrency. Bollinger bands The width is very narrow, indicating a lack of or significantly reduced volatility. Historically, Bollinger Bands have been known to expand during periods of high volatility and Hold on to low volatility.
Severino’s Litecoin chart displays the upper Bollinger Band marked by the red line, the base line by the blue line, and the lower band highlighted in the green area. The analyst revealed that Litecoin’s candles are currently positioned above the base line at $83.3, indicating the potential for bullish momentum.
If the The price of Litecoin continues to rise and crosses the upper Bollinger Band at around $130, Severino predicts that this could trigger higher volatility and an explosive price breakout. Based on historical trends, a very narrow Bollinger Band is often a The possibility of a bullish trend reversal After a period of integration.
Severino’s analysis shows the upper BB as $130 Important resistance area for Litecoin. A sustained break above this level on the higher timeframe could pave the way for more gains, possibly pushing Litecoin above its current market value of around $111.5.
According to CoinMarketCap, Litecoin recorded modest gainsIt has gained 6.14% in the last 24 hours. In the past week, the leading cryptocurrency has also experienced a steep rise of around 11.7% from its current level. To reach the critical resistance area at $130, Litecoin needs to rise about 18% from its market price.
Litecoin rally predicted, target up 38%
According to crypto analyst Mike at X, Litecoin is Preparing A new price high for a significant breakout. He predicts that the cryptocurrency will record 38% Price rally From the breakout point at $106 to reach a fresh bullish target of $146.67.
Looking at the analyst price chart, Litecoin seems to have broken the $102 resistance level and is approaching its next important resistance at $122.77. The chart also highlights horizontal lines indicating critical resistance areas for Litecoin.
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Mike pinpointed a key support zone at $99.91 that could act as a safety net for Litecoin during a downtrend. Should Litecoin face a significant price drop below this support, the analyst points to the $86.97 and $74.43 price levels as the next potential support areas.
Featured images from Pexels, charts from TradingView
