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Famed trading expert John Bollinger recently hinted that Litecoin (LTC) might be gearing up for a major move, saying it is "about time for LTC to wake up." This comes after a follower asked him for his thoughts on Litecoin’s monthly chart using the Bollinger Bands, the technical analysis tool he created.
Alex DovbnyaThe follower, recognizing Bollinger's expertise, wanted his take on what the chart reveals. Bollinger pointed out the challenge of analyzing a logarithmic scale chart when the lower Bollinger Band crosses zero, and suggested adjusting the Y-axis slightly lower than the price low while keeping the log scale.
With these adjustments, the Litecoin price chart showed a tightening of the Bollinger Bands. The Bollinger Bands are a popular tool among traders, consisting of a middle band (a simple moving average) and two outer bands (standard deviations from the middle).
When the bands tighten, it usually means the market is experiencing low volatility, which often leads to a significant price move.
Litecoin, often called the silver to Bitcoin's gold, is a peer-to-peer cryptocurrency launched in 2011 by Charlie Lee. It’s known for faster transaction times and a different hashing algorithm than Bitcoin.
Right now, LTC is priced at $71.20, with a market cap of $5.35 billion, making it the 20th largest cryptocurrency. Litecoin’s all-time high was $413.49, hit back on May 10, 2021.
Alex Dovbnya
