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Litecoin (LTC) has been experiencing a significant drop in volatility, the crypto analyst highlighting the unusual strength in two Bollinger Bands (BB) per month (2M). According to the analyst, the current technical setup of Litecoin is pointing to be strong a possible parabolic breakoutwith the $130 price mark emerging as a critical resistance area.
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Small Bollinger Bands to trigger Litecoin Breakout
Prominent crypto analyst Tony Severino shared price chart on X (formerly Twitter) showing the Litecoin price action over a period of two months, using Bollinger Bands as a technical indicator for measurement. cryptocurrency price volatility. Bollinger Bands assess market volatility by plotting a high and low band around the Moving Average (MA), which serves as a baseline.
In the case of Litecoin, Severino indicated that 2M cryptocurrency The Bollinger Band the range is too small, emphasizing the lack or reduction of maximum flexibility. Historically, Bollinger Bands have been known to develop during periods of extreme volatility as well tighten to low volatility.
Severino’s Litecoin chart shows the upper Bollinger Band marked with a red line, the base line with a blue line, and the lower band highlighted in green. The analyst revealed that Litecoin candles are currently placed above the base line at $83.3, indicating the strength of bullish momentum.
If i The price of Litecoin continues to rise and cut the upper Bollinger band at about 130 dollars, Severino predicts that it may cause higher volatility and price explosion. Based on historical trends, the narrowest Bollinger Bands tend to show a a possible reversal of the bullish trend after the integration period.
Severino’s analysis identified the BB high at $130 as a The lowest price of Litecoin shares. A sustained break above this level at the high could pave the way for further gains, potentially pushing Litecoin above its current market value of around $111.5.
According to CoinMarketCap, Litecoin recorded modest gainsincreased by 6.14% in the last 24 hours. In the last week, the prominent cryptocurrency has also experienced a high increase of about 11.7% from its current level. In order to reach the critical resistance point at $130, Litecoin is required to rise by about 18% from its market value.
Litecoin Rally Predicted, Target 38% Against
According to crypto analyst Mike on X, Litecoin i preparation with a significant exit from the new high price. He predicts that cryptocurrency will record 38% price rally from the exit point of $106 to reach the new bullish target of $146.67.
Looking at the analyst price chart, Litecoin seems to have broken the resistance level at $102 and is approaching its next key resistance at $122.77. The chart also highlights horizontal lines that indicate critical areas of resistance for Litecoin.
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Mike identified a key support area at $99.91 that could act as a safety net for Litecoin during a downtrend. If Litecoin should face a significant price drop below this support, the analyst points to $86.97 and $74.43 price levels as the next possible support areas.
Featured image from Pexels, chart from TradingView