The legendary technical analyst shared his analysis of a well-established altcoin approaching the constriction zone.
John Bollinger says the recession will end in this altcoin
The veteran technical analyst said in his latest tweets that Liltecoin is approaching the constriction zone. Bollinger stated that the LTC price has been trading in a narrow range for about six months.
According to Bollinger’s chart, Litecoin has approached the squeeze zone on the weekly chart. Such stagnant price movements are typically followed by periods of extreme volatility. Also, the downside momentum could pick up speed after LTC price drops below the Bollinger Band. Bollinger band squeeze is a situation that usually occurs after sideways price movements.
Litecoin price analysis
The 23rd largest cryptocurrency by market cap is trading at $54.45 at the time of writing. This level is 86.82% off the May 10, 2021 ATH price of $412.96. LTC price has not had an opportunity to rise above $300 again since May of last year.
Meanwhile, prominent Bitcoin supporter Tuur Demeester noted that he has yet to notice a change in the LTC/BTC trend. Since February 2018, Litecoin has lost a staggering 89.6% compared to Bitcoin. It is currently on a downward trend. After spending a long time among the top 10 cryptos, Litecoin has not been able to beat other projects in the bull run. Despite fierce competition, it is still one of the few cryptocurrencies that has been around for over a decade. The project finally rolled out the privacy-focused MimbleWimble upgrade in June. However, this caused some problems in compliance with the legislation.
What did the MW upgrade change for the altcoin?
After the famous MimbleWimble upgrade, Litecoin’s hash rate reached the ATH level. According to data from OKLink, it saw ATH on September 22 with a hash rate of 511.56 TH/s.
According to data from Santiment, the index of addresses that invest in LTC has dropped steadily since the start of the month. For the last 48 hours, daily active addresses on the LTC network have dropped 34% in the last 24 days to stay at 212,000. Along with the decline in the number of addresses transacting daily, the total amount of LTC in all transactions completed so far this month has also dropped by 46%. In dollar terms, it fell from $3.55 billion to 2.04 billion in less than a month.
Since the month started, LTC has seen a rally of over $100,000, especially in whale trading. Santiment also revealed that for transactions above $100,000, the lowest daily number recorded during the period examined by LTC was 681 transactions on September 11. For whale transactions over $1 million, this metric has been on the decline since the highest daily 616 transactions on Sept.
Meanwhile, in recent days, the percentage of LTC’s circulating supply held by whales has been on the decline. It decreased from 43.05% when it started the month to 42.76%.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.