Litecoin (LTC) Has ‘Been Held Captive’ – Should You Expect a Breakout?
Litecoin has remained in volatility captivity, according to a renowned analyst and Bollinger Bands indicator inventor John Bollinger.
Commenting on expectations of the Litecoin Summit 2022, Bollinger highlighted that the altcoin has remained stuck in a massively low volatility area for five months. He added that the LTC/USD weekly chart had a squeeze as of September 26.
Any Truth Here?
Surprisingly, Litecoin didn’t only confirm volatility against the USD alone. The daily chart shows Litecoin printed similar tendencies against the dollar-tied USDT. Though the BBs indicated trials to escape extreme regions, the attempts have met resistance.
For instance, Litecoin attempted to exit low volatility between June 9 and 15 but encountered resistance. Similar narratives emerged around June 26, July 6, and recently, September 13 and September 21.
Nevertheless, Litecoin seemed ready for a breakout from its five-month-long status. LTC had its price near $54.27, close to highs touched in the week, and a move toward high volatility appears possible. Moreover, it might be too quick to presume that ‘help’ was imminent.
Assessing Next Steps
Evaluating the AO (Awesome Oscillator), Litecoin didn’t appear ready to stretch the current upsides. The -2.85 AO reading wasn’t enough to support sustained rallies, as buying momentum remained beneath the zero histogram level.
Nevertheless, the signals of gaining a bullish strength remain essential considering the upside stance. However, Litecoin investors might need to ensure the lowest expectations.
Assessing the CMF (Chaikin Money Flow) didn’t show any match with the stretched rally at -0.11. Thus, LTC might surrender its 4.48% surge within no time.
On-Chain Front
It wasn’t all roses as far as Litecoin on-chain metrics are concerned. Santiment indicated that the token’s volume soared to 475.27 million over the past day. Meanwhile, the development activity maintained an inverse, decreasing to 0.1. Though the downs & ups, Litecoin long-term traders would wait for Bollinger’s stance.
Nevertheless, enthusiasts can expect sideways action in the near term. Also, the broad market remains in a dicey condition. Bitcoin saw a sudden overnight crash after climbing beyond $20K.
While publishing this post, the leading crypto by market cap changed hands at $18,761.66, losing over 6% within the past day (Coinmarketcap data).
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