Litecoin [LTC] has been in a volatility bondage. This was the opinion of John Bollinger, famend analyst, and inventor of the well-known indicator, Bollinger Bands.
Talking in anticipation of the 2022 Litecoin Summit, Bollinger famous that LTC had been caught in extraordinarily low volatility areas for 5 months. He additionally identified that there was a squeeze on the weekly LTC/USD chart as of 26 September.
Litecoin has been in a good buying and selling vary for 5 months. Now you’ll be able to see a Squeeze on the weekly chart. I’ll speak about this on the Litecoin summit.https://t.co/vcryn5xWRj$LTCUSDhttps://t.co/dE02stUoVU
— John Bollinger (@bbands) September 26, 2022
Any fact on this?
Apparently, Litecoin didn’t solely present that sort of volatility towards america Greenback alone. On the every day chart, LTC had completed the identical towards the dollar-pegged Tether [USDT].
Whereas the Bollinger Bands (BB) confirmed that there have been makes an attempt to exit into excessive ranges, it has been met with resistance. For instance, between 9 June and 15 June, LTC tried to exit the low volatility standing however was resisted. It was an analogous case round 26 June and 6 July, and these days, 13 September, and 21 September.
Supply: TradingView
Nonetheless, it could appear that LTC was on the verge of breaking out from the shackles of the five-month lengthy state. With its price at $54.27, and near the best it had reached in seven days, a transfer into excessive volatility could possibly be potential. On the identical time, it could even be too quickly to imagine that “assist” was near the horizon.
Evaluating subsequent steps
Assessing the Superior Oscillator (AO), LTC didn’t appear solidly ready to increase the present greens. Based mostly on the AO indication, a -2.85 worth was not sufficient grounds to mission a sustainable rally, particularly because the shopping for momentum was beneath the zero-histogram level.
Nonetheless, the indicators of selecting up a bullish momentum couldn’t be ignored contemplating the inexperienced standings. Even with that, LTC traders could wish to hold expectations on the lowest stage. A have a look at the Chaikin Cash Stream (CMF) didn’t reveal any alignment with an elongated rally at -0.11. Therefore, LTC might lose its 4.48% uptick in little to no time.
Supply: TradingView
As for LTC’s on-chain metrics, it was not all roses. Santiment confirmed that its quantity was as much as 475.27 million from the day prior to this. On the event exercise, inverse was the truth because it decreased to 0.1. Regardless of the ups and downs, LTC long-term traders could be ready to listen to Bollinger’s facet of the story. Nonetheless, it could possibly be thought-about take to anticipate the sideways motion within the quick time period.
Supply: TradingView