Litecoin’s Bollinger Bands Tighten, Signaling Potential Breakout Above $130
Litecoin (LTC) has shown a notable decrease in volatility, indicated by a tightening in its bi-monthly Bollinger Bands (BB). An analyst suggests that Litecoin's current technical setup indicates potential for a parabolic breakout, with the $130 price mark identified as a critical resistance zone.
Narrow Bollinger Bands To Trigger Litecoin Breakout
Crypto analyst Tony Severino shared a price chart on X showing Litecoin’s price action using Bollinger Bands to measure price volatility. The Bollinger Bands consist of an upper and lower band around a Moving Average, which serves as a baseline.
Severino noted that Litecoin’s 2M Bollinger Band width is very narrow, indicating significantly decreased volatility. Typically, Bollinger Bands expand during high volatility and tighten in low volatility periods.
The chart displays the upper Bollinger Band marked by a red line, the basis line in blue, and the lower band highlighted in green. Currently, Litecoin’s candlesticks are above the basis line at $83.3, suggesting potential bullish momentum.
If Litecoin's price continues to rise and crosses the upper Bollinger band near $130, it may trigger increased volatility and a significant price breakout. Historical trends show that a narrow Bollinger Band often signals a potential bullish trend reversal after consolidation.
Severino identifies the upper BB at $130 as a crucial resistance level. A sustained breakout above this level could lead to substantial gains, possibly pushing Litecoin above its current market value of approximately $111.5.
According to CoinMarketCap, Litecoin has gained 6.14% in the past 24 hours and about 11.7% over the last week. To reach the critical resistance area at $130, Litecoin needs to increase by approximately 18% from its current market price.
Litecoin Rally Predicted, Targets 38% Upside
Analyst Mike predicts Litecoin is preparing for a significant breakout, forecasting a 38% price rally from the breakout point at $106 to a target of $146.67.
The analysis shows Litecoin has broken the $102 resistance level and approaches the next major resistance at $122.77, with horizontal lines indicating key resistance areas.
Mike identifies a support zone at $99.91, which may serve as a safety net during a downtrend. If Litecoin drops below this support, the next potential support levels are $86.97 and $74.43.
Featured image from Pexels, chart from TradingView