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John Bollinger hints at a potential breakout for Litecoin (LTC) as Bollinger Bands suggest imminent price movement amidst low volatility.
John Bollinger, the creator of the Bollinger Bands indicator, recently suggested that Litecoin might be on the verge of significant price movement. This revelation came during a conversation with an analyst pseudonymously known as Bamboo. Bamboo had asked Bollinger for his insights on the monthly chart of LTC, leading to a discussion about a potential market shift.
Analyzing Litecoin Monthly Chart
Bamboo posted an image of the monthly chart for Litecoin, which spans the candlestick patterns since 2014. The chart featured Bollinger Bands and indicated that Litecoin has been in a downward movement in recent times. LTC currently trades at $73.36, down 82.23% from its all-time high.
Bollinger Bands, which consist of a middle band and two outer bands, now reveal relatively narrow bands compared to the high volatility periods of 2018 and 2021. Notably, LTC has seen substantial price increases after periods of low volatility (narrow bands).
However, Bollinger advised switching between linear and logarithmic scales to gain a clearer perspective on the trend.
About Time For LTC to Wake Up?
Bollinger’s suggestion to switch scales led to further analysis. The linear scale confirmed that LTC has been consolidating within a narrow range, suggesting market indecision. Further, the middle band, acting as a dynamic support and resistance level, was very close to the current price.
Historically, Litecoin has experienced significant price movements following periods of consolidation with narrow Bollinger Bands. This pattern indicates that traders should watch for a decisive move above or below the bands as an indication of the next major trend.
“Squeezy, squeezy. About time for LTC to wake up,” remarked the veteran market analyst. Essentially, Bollinger’s remark highlighted the potential for an imminent breakout for Litecoin.
Squeezy, squeezy. About time for LTC to wake up.
— John Bollinger (@bbands) July 22, 2024
High Transactions Signal Possible LTC Surge
Supporting this potential awakening, data from IntoTheBlock shows Litecoin’s robust network activity. As of July 12, Litecoin processed $2.85 billion in daily large transactions over $100,000. This activity outpaces other Layer 1 cryptocurrencies like Dogecoin, which sees only $590 million in large transactions daily.
This significant whale activity highlights Litecoin’s active network and substantial involvement from large holders. From July 5 to 10, transaction volumes peaked at $3.3 billion and then settled around $2.4 billion, indicating sustained high activity levels.
At press time, Litecoin is hovering around $73.33, reflecting a 1.46% gain over the past 24 hours. LTC also saw a 1.14% price increase last week.