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Litecoin (LTC) saw a significant drop in volatility, with a cryptocurrency analyst highlighting an unusual tightening in the semi-monthly Bollinger Band (BB) indicator. According to one analyst, Litecoin’s current technical setup indicates strength Probability of a parabolic breakoutwith the $130 price mark emerging as a critical resistance area.
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Tight Bollinger Bands to Trigger Litecoin Breakout
Prominent cryptocurrency analyst Tony Severino subscriber Price chart on Cryptocurrency price volatility. Bollinger Bands examine market volatility by drawing an upper and lower band around the moving average (MA), which acts as a baseline.
In the case of Litecoin, Severino noted that the value of the cryptocurrency is 2 million Bollinger Band The supply is very tight, which confirms that there is no or significantly low volatility. Historically, Bollinger bands are known to expand during periods of high volatility Tighten at low volatility.
Severino’s Litecoin chart displays the upper Bollinger Band marked with the red line, the base line with the blue line, and the lower band marked with the green area. The analyst revealed that Litecoin candles are currently positioned above the baseline at $83.3, indicating potential bullish momentum.
if Litecoin price continues to rise It crosses the upper Bollinger band at around $130, which Severino predicts could lead to increased volatility and an explosive price breakout. Based on historical trends, a very narrow Bollinger Band often indicates a… Possibility of an upward trend reversal After a period of unification.
Severino analysis sets the upper BB level at $130 A critical resistance area for Litecoin. A sustained breakout above this level on a longer time frame could pave the way for further gains, which could push Litecoin significantly higher than its current market value of around $111.5.
According to CoinMarketCap. Litecoin posted modest gainsUp 6.14% over the past 24 hours over the past week, the prominent cryptocurrency has also seen a higher increase of around 11.7% to its current level. To reach the critical resistance area at $130, Litecoin would have to rise approximately 18% above the market price.
Expectations for Litecoin to rise, targeting a 38% rise
According to cryptocurrency analyst Mike on X, so is Litecoin Preparation For a major breakout to a new high price level. The cryptocurrency is expected to reach 38%. High prices From the breakout point at $106 to reach a new upside target at $146.67.
Looking at the analyst price chart, it appears that Litecoin has broken the $102 resistance level and is approaching the next important resistance at $122.77. The chart also highlights the horizontal lines indicating critical resistance areas for Litecoin.
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Mike has identified a key support area at $99.91 which could serve as a safety net for Litecoin during a downtrend. If Litecoin experiences 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 image from Pexels, chart from TradingView
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