Litecoin (LTC) has been experiencing a sharp drop in volatility, with crypto analyst showing unusual tightening in the bi-monthly (2M) Bollinger Bands (BB). According to an analyst, the current technical situation of Litecoin appears strong potential for parabolic breakswith the $130 price mark emerging as a critical resistance area.
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Narrow Bollinger Band to Trigger Litecoin Breakout
Renowned crypto analyst Tony Severino divided price chart on X (formerly Twitter) showing Litecoin price action on a bi-monthly time frame, using Bollinger Bands as a technical indicator to measure cryptocurrency price volatility. The Bollinger Bands analyze market volatility by plotting an upper and lower band around a moving average (MA), which acts as a base.
In the case of Litecoin, Severino has revealed that the cryptocurrency 2M Bollinger Bands the width is very narrow, indicating a lack or significant reduction in volatility. Historically, Bollinger Bands have been known to widen during periods of high volatility and low level tension.
Severino's Litecoin chart shows the upper Bollinger Band indicated by the red line, the lower line by a blue line, and the lower band indicated in the green area. The analyst revealed that Litecoin candles are currently located above the baseline at $83.3, indicating potential for bullish momentum.
If the Litecoin exchange rate is going up against Litecoin and crossing the upper Bollinger band at around $130, Severino predicts that it could trigger a higher move and an explosive price break. Based on historical trends, extremely narrow Bollinger Bands often indicate a ability to reverse motion after a period of consolidation.
Severino's analysis has identified the high BB at $130 as a The fastest rate online Litecoin. A sustained break above this level on a time frame high could pave the way for more gains, possibly pushing Litecoin well above its current market value of around $111.5.
According to CoinMarketCap, Litecoin exchange rate has increased against kinahas changed so far +6.14% in the last 24 hours. Over the past week, the prominent cryptocurrency has also experienced a higher increase of about 11.7% to the current level. To reach the critical protection zone at $130, Litecoin needs to rise about 18% from its market price.
Litecoin Rally Predicted, Targets 38% Upside
According to crypto analyst Mike on X, Litecoin is preparing for a big break to a new high price. It is expected that the cryptocurrency will register 38% price collection from the starting level at $106 to reach a new bullish target of $146.67.
Looking at the analyst's price chart, Litecoin seems to have broken the $102 resistance level and is approaching its next major resistance at $122.77. The chart also shows horizontal lines showing critical resistance areas for Litecoin.
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Mike has identified a key support area at $99.91 that could be a safety net for Litecoin during a downturn. If Litecoin faces a significant drop in price below this support, the analyst points to the $86.97 and $74.43 price levels as the next possible support areas.
Featured image from Pexels, chart from TradingView
