Litecoin (LTC) has been experiencing a significant decrease in volatility, with a crypto analyst highlighting an unusual tightening in its bi-monthly (2M) Bollinger Bands (BB). According to an analyst, Litecoin’s current technical setup points to strong potential for a parabolic breakout, with the $130 price mark emerging as a critical resistance zone.

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Narrow Bollinger Bands To Trigger Litecoin Breakout

Prominent crypto analyst Tony Severino shared a price chart on X (formerly Twitter) showing Litecoin’s price action on a bi-monthly time frame, applying Bollinger Bands as a technical indicator to measure a cryptocurrency’s price volatility. The Bollinger Bands examine market volatility by plotting an upper and lower band around a Moving Average (MA), which acts as a basis line. 

In Litecoin’s case, Severino has indicated that the cryptocurrency’s 2M Bollinger Band width is extremely narrow, underscoring a lack of or significantly decreased volatility. Historically, Bollinger Bands are known to expand during periods of high volatility and tighten at low volatility. 

Severino’s Litecoin chart displays the upper Bollinger Band marked by the red line, the basis line by a blue line, and the lower band highlighted in the green area. The analyst disclosed that Litecoin’s candlesticks are currently positioned above the basis line at $83.3, indicating potential for bullish momentum. 

If the price of Litecoin continues upwards and crosses the upper Bollinger band at approximately  $130, Severino predicts that it could trigger heightened volatility and an explosive price breakout. Based on historical trends, an extremely narrow Bollinger Band often indicates a potential for a bullish trend reversal after a period of consolidation.

Severino’s analysis has pinpointed the upper BB at $130 as a crucial resistance area for Litecoin. A sustained break above this level on a high timeframe could pave the way for more gains, potentially pushing Litecoin significantly above its current market value of around $111.5.

According to CoinMarketCap, Litecoin has recorded modest gains, increasing by 6.14% in the past 24 hours. Over the past week, the prominent cryptocurrency has also experienced a higher increase of about 11.7% to its current level. To reach the critical resistance area at $130, Litecoin is required to rise by approximately 18% from its market price.

Litecoin Rally Predicted, Targets 38% Upside

According to crypto analyst Mike on X, Litecoin is preparing for a significant breakout to a new price high. He forecasts that the cryptocurrency will record a 38% price rally from the breakout point at $106 to reach a fresh bullish target of $146.67. 

Looking at the analyst’s price chart, Litecoin appears to have broken the $102 resistance level and is approaching its next significant resistance at $122.77. The chart also highlights horizontal lines indicating critical resistance areas for Litecoin. 

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Mike has pinpointed a key support zone at $99.91 that could act as a safety net for Litecoin during a downtrend. Should Litecoin face a significant price drop below this support, the analyst points to the $86.97 and $74.43 price levels as the next potential support areas. 

Featured image from Pexels, chart from TradingView

Widely followed trader Altcoin Sherpa says that one artificial intelligence (AI)-focused crypto asset is about to present opportunities for bulls.

Altcoin Sherpa tells his 236,000 followers on the social media platform X that ZEREBRO, which bills itself as an AI system that autonomously creates and distributes content onto various platforms, may allow entries in the $0.40 range.

After a correction, the trader says that ZEREBRO will be “very strong” in the future.

“$0.50 is still resistance and I expect some sort of pullback between here and low $0.60s but I still think this is going to be a very strong one going forward. I have a solid bag of this. Team is full of shippers

I’d view the $0.40ish area as a decent entry.”

At time of writing, ZEREBRO is trading at $0.54, up 38% in the last 24 hours.

Altcoin Sherpa is also bullish on decentralized perpetuals exchange Hyperliquid (HYPE).

He says that those looking to position themselves long on HYPE can start to look at accumulating at current prices, with a potential target above the $50 level.

“HYPE DCA (dollar cost average) between 30-25 and feel good about it.

Also consider saving some $$ to buy lower in case it comes. low 20s would be a gift and I plan on adding plenty more if it comes.

still think it goes to $50+ before cycle end.”

At time of writing, HYPE is trading for $0.26.

With his eye on the memecoin sector, the trader says many of the big memes like MOODENG, CHILLGUY, or PNUT “all either send hard” from current prices or “fall off a cliff.”

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With the new year approaching, some analysts forecasted a “very bullish” 2025 for Altcoins. The sector is expected to explode soon and kickstart the long-awaited “Altseason” after retesting a key support level.

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Altcoins Retest Key Support Level

Amid the recent market’s performance, many Altcoins have struggled to record significant gains. However, several market watchers forecasted the start of the altcoin will come as soon as January 2025.

Fueled by the post-US election pump, the total crypto market capitalization, excluding Bitcoin and Ethereum, broke out on a three-year downtrend in mid-November, surpassing its yearly high of $788 billion. During this month’s rally, the sector surged to $1.1 trillion, its highest market cap since 2021.

Since then, Altcoins has struggled over the last two weeks, dropping nearly 26% as Bitcoin lost the $100,000 mark but remains above a key level despite the recent performance.

Crypto Jelle pointed out that the sector broke out and retested its “major trendline while destroying all leverage in the process.” The analyst highlighted that funding was “completely reset,” sentiment has been at its lowest, and the chart seems promising, adding he is “Very bullish for 2025.”

He also noted that Altcoins’ price action is “very similar” to Bitcoin’s first major pullback of 2021. Per the chart, the flagship crypto had a “strong rally, pullback, lower high, and chopping below the first low” before breaking out to new highs.

Based on this performance, Altcoins’ pullback is seemingly over, they “should start pushing back up soon if this keeps playing out the same.” Similarly, Michaël van de Poppe stated, “The correction is almost over, and the time for up only is on the horizon for Altcoins and Bitcoin. Expecting a lot to come.”

Altseason To Follow 2021’s Playbook?

Titan of Crypto asserted that Altcoins are set to explode soon, suggesting that “the grand finale is around the corner.” Per the analyst’s chart, Altcoins have been in a two-year cup and handle pattern, breaking out of the pattern’s upper line during the recent market highs.

According to the pattern, Altcoins, excluding ETH, could see a 200% to a market capitalization of $1.4 trillion, surpassing 2021’s high of $1.13 trillion. The analyst also pointed out that, ahead of its 2021 rally, the sector saw a similar performance.

In 2020, Altcoins broke out in November and saw a significant 30% drop in early December, followed by a four-week recovery. Then, they recorded a 143% surge in January 2021, which led to other three-monthly green candles before the first major retrace.

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Similarly, they’ve experienced a 26% drop this December, currently being on the third week out of the expected four-week recovery period. To the analyst, “Early January could mark the start of an ‘up only’ season.”

Lastly, Titan of Crypto added that, during the last two cycles, Altcoins’ initial rally lasted between 140 and 175 days, suggesting that this cycle’s rally could hit a new high around April or May. If it were to follow the past cycles’ performance, it could see a first pump around Q2 2025 before peaking in Q4.

Featured Image from Unsplash.com, Chart from TradingView.com