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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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A closely followed crypto trader says he’s looking to scoop up more of a Solana (SOL)-based memecoin amid the market correction.

The pseudonymous analyst known as Altcoin Sherpa tells his 236,000 followers on the social media platform X that he’s got his eye on Fartcoin (FARTCOIN), a memecoin that was created by an anonymous developer referencing the “ideal memecoin” suggested by the artificial intelligence (AI) large language model Truth Terminal.

Altcoin Sherpa says he’s looking to accumulate FARTCOIN even if it drops to as low as $0.65.

“I’m filling a bit around $0.80ish, approaching my buys. Total buys = some at $1, more at $0.80, and I also moved some other buys to $0.65 in case they come. I want my average to be around $0.80 or lower though. Still think this is a good meme and I’m hopeful it doesn’t pull a goat/act/etc after being listed…

Frankly, I am a bit scared that this trade is a bit too consensus to be honest. It’s a fantastic meme and hits many incredible narratives but it seems almost ‘too’ obvious. But still gonna fire and add.”

At time of writing, FARTCOIN is trading at $0.86, still within the trader’s accumulation zone.

Besides FARTCOIN, the trader names two other altcoins on his radar for potential rallies. They include the decentralized finance (DeFi) protocol Hyperliquid (HYPE) and ai16z (AI16Z) – which claims to be an AI agent-staffed venture capital fund.

Altcoin Sherpa also thinks that the bullish conditions in crypto will eventually return to rescue traders who are now trapped amid the market pullback.

“If you’re underwater, all you have to do is wait a few more weeks and you’ll be saved by the market.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney