This article is available in Spanish.
Litecoin (LTC) has experienced a significant decrease in volatility, with one crypto analyst highlighting an unusual tightening of the bi-monthly (2M) Bollinger Bands (BB). According to an analyst, Litecoin’s current technical setup points strongly potential for a parabolic breakoutwith the $130 price emerging as a critical resistance zone.
Related reading
Narrow Bollinger Bands to Trigger Litecoin Breakout
Prominent crypto analyst Tony Severino shared a price chart on the price volatility of a cryptocurrency. The Bollinger Bands examine market volatility by plotting an upper and lower band around a moving average (MA), which acts as a baseline.
In the case of Litecoin, Severino has indicated that the cryptocurrency is 2M Bollinger band The width is extremely narrow, highlighting a lack of or significantly reduced volatility. Historically, Bollinger Bands have been known to expand during periods of high volatility tightening at low volatility.
Severino’s Litecoin chart shows the upper Bollinger Band marked by the red line, the baseline by a blue line and the lower band marked in the green area. The analyst disclosed that Litecoin’s candlesticks are currently above the baseline at $83.3, indicating potential for bullish momentum.
If the Litecoin price continues to rise and crosses the upper Bollinger band at around $130, Severino predicts this could lead to increased volatility and an explosive price breakout. Based on historical trends, an extremely narrow Bollinger Band often indicates a potential for a bullish trend reversal after a period of consolidation.
Severino’s analysis has the upper BB set at $130 as a crucial resistance area for Litecoin. A sustained break above this level on a high timeframe could pave the way for more gains, potentially taking Litecoin significantly above its current market value of around $111.5.
According to CoinMarketCap, Litecoin has made modest gainsan increase of 6.14% in the last 24 hours. Over the past week, the prominent cryptocurrency has also experienced a higher increase of around 11.7% to current levels. To reach the critical resistance area at $130, Litecoin needs to rise by around 18% from its market price.
Litecoin Rally Predicted, Targeting 38% Upside
According to crypto analyst Mike at X, Litecoin is prepare for a significant breakout to a new price high. He predicts that the cryptocurrency will record a growth of 38%. price rally from the breakout point at $106 to reach a new 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 significant resistance at $122.77. The chart also highlights horizontal lines that indicate critical areas of resistance for Litecoin.
Related reading
Mike has identified a key support zone at $99.91 that could act as a safety net for Litecoin during a downtrend. Should Litecoin experience a significant price decline below this support, the analyst points to the $86.97 and $74.43 price levels as the next potential support areas.
Featured image from Pexels, chart from TradingView
