Will Litecoin [LTC] breakout after this analyst claims it has been held prisoner

Litecoin [LTC] has been in a volatility bondage. This was the opinion of John Bollinger, famend analyst, and inventor of the well-known indicator, Bollinger Bands.

Talking in anticipation of the 2022 Litecoin Summit, Bollinger famous that LTC had been caught in extraordinarily low volatility areas for 5 months. He additionally identified that there was a squeeze on the weekly LTC/USD chart as of 26 September.

Litecoin has been in a good buying and selling vary for 5 months. Now you possibly can see a Squeeze on the weekly chart. I’ll discuss this on the Litecoin summit.https://t.co/vcryn5xWRj $LTCUSD https://t.co/dE02stUoVU

— John Bollinger (@bbands) September 26, 2022

Any reality on this?

Curiously, Litecoin didn’t solely present that form of volatility in opposition to the US Greenback alone. On the each day chart, LTC had achieved the identical in opposition to the dollar-pegged Tether [USDT].

Whereas the Bollinger Bands (BB) confirmed that there have been makes an attempt to exit into excessive ranges, it has been met with resistance. For instance, between 9 June and 15 June, LTC tried to exit the low volatility standing however was resisted. It was the same case round 26 June and 6 July, and these days, 13 September, and 21 September.

Supply: TradingView

Nevertheless, it might appear that LTC was on the verge of breaking out from the shackles of the five-month lengthy state. With its price at $54.27, and near the best it had reached in seven days, a transfer into excessive volatility may very well be attainable. On the identical time, it might even be too quickly to imagine that “assist” was near the horizon.

Evaluating subsequent steps

Assessing the Superior Oscillator (AO), LTC didn’t appear solidly ready to increase the present greens. Primarily based on the AO indication, a -2.85 worth was not sufficient grounds to challenge a sustainable rally, particularly because the shopping for momentum was under the zero-histogram level.

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Nevertheless, the indicators of selecting up a bullish momentum couldn’t be ignored contemplating the inexperienced standings. Even with that, LTC buyers could wish to hold expectations on the lowest stage. A take a look at the Chaikin Cash Circulate (CMF) didn’t reveal any alignment with an elongated rally at -0.11. Therefore, LTC may lose its 4.48% uptick in little to no time.

Supply: TradingView

As for LTC’s on-chain metrics, it was not all roses. Santiment confirmed that its quantity was as much as 475.27 million from yesterday. On the event exercise, inverse was the fact because it decreased to 0.1. Regardless of the ups and downs, LTC long-term buyers could be ready to listen to Bollinger’s facet of the story. Nonetheless, it may very well be thought of an excellent take to anticipate the sideways motion within the quick time period.