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 decent buying and selling vary for 5 months. Now you may 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 reality on this?
Apparently, Litecoin didn’t solely present that sort of volatility towards the USA Greenback alone. On the each day chart, LTC had executed 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 identical case round 26 June and 6 July, and these days, 13 September, and 21 September.
Nevertheless, it could appear that LTC was on the verge of breaking out from the shackles of the five-month lengthy state. With its value at $54.27, and near the very best it had reached in seven days, a transfer into excessive volatility might be potential. On the similar 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 venture a sustainable rally, particularly because the shopping for momentum was under the zero-histogram level.
Nevertheless, the indicators of selecting up a bullish momentum couldn’t be ignored contemplating the inexperienced standings. Even with that, LTC buyers might need to hold expectations on the lowest stage. A have a look at the Chaikin Cash Move (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.
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 yesterday. On the event exercise, inverse was the fact because it decreased to 0.1. Regardless of the ups and downs, LTC long-term buyers could be ready to listen to Bollinger’s facet of the story. Nonetheless, it might be thought of take to anticipate the sideways motion within the quick time period.