Litecoin (LTC) has been buying and selling within the absence of appreciable volatility over the previous six months. A pointy motion might happen quickly, inflicting a breakout from this vary.
John Bollinger, a veteran dealer and the creator of the Bollinger bands indicator, famous that the worth has been buying and selling in a decent vary for the previous 5 months and is approaching a squeeze within the weekly chart.
He plans to debate this occasion on the Litecoin summit, which shall be held on Oct. 21 and 22.
For the reason that worth is buying and selling in a close-knit vary, a squeeze would imply {that a} decisive motion in a single or the opposite course will happen, breaking out/down from the vary within the course of.
Buying and selling vary tightest since July 2020
LTC has been falling since reaching an all-time excessive worth of $413.50 in Might 2021 after which making a decrease excessive in Nov. Thus far, it has reached a low of $40.30.
Presently, LTC is buying and selling just under the midline (inexperienced icon) of the Bollinger bands indicator. It’s fascinating to notice that the vary has not been this tight since July 20 (black line). On the time, the worth broke out above the higher restrict of the vary earlier than starting an enormous bull run.
Nonetheless, there are not any indicators of a bullish reversal but, because the RSI is lowering and continues to be beneath 50. Moreover, it’s nonetheless following its bearish divergence development line.
A reclaim of the center of the Bollinger bands (orange) could be an indication {that a} bullish reversal has begun, since LTC has been buying and selling beneath it since Nov.
Is an LTC rally incoming?
The day by day chart helps the opportunity of the worth initiating an upward motion. There are three principal causes for this.
- Firstly, the day by day RSI has generated bullish divergence.
- Secondly, the worth is buying and selling inside a descending parallel channel, which often accommodates corrective actions.
- Thirdly, the bounce occurred on the confluence between the 0.618 Fib retracement assist stage and the assist line of the channel.
So, a rise above center of the channel, which is at present at $56, would go a good distance in confirming that the proposed upward motion within the weekly timeframe is about to transpire.
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