Litecoin Inches Toward Bollinger Band Buy Signal After 6% Surge
29 Julio 2024 - 10:17AM
NEWSBTC
Litecoin is among the crypto market leaders today, surging 6%
intraday while Bitcoin remains flat. The single-day rally in LTCUSD
might be enough, however, to generate a near-term buy signal using
the Bollinger Bands. What might this mean for the altcoin, and
could this be a sign that a more positive trend is beginning?
Possible Buy Signal Setup Lights Up In Litecoin Litecoin has been
among the most painful coins to hold over the last several years.
In 2017, the silver to Bitcoin as digital gold went on a
monumental, nine-month rally. During that nine-month stretch,
Litecoin gained over 10,000% and put the coin in the top ten
cryptocurrencies by market cap. Related Reading: Litecoin Is A Hub
Of Whales: Over $2.85 Billion Of $100,000 Transactions Processed A
lot has changed since then, with Litecoin now ranked number 18 by
market cap, barely holding onto top 20 status. The altcoin has
mostly trended sideways for the past seven years since the 2017
bull run, much to the disappointment of investors. Brighter days
might be ahead, at least in the near-term, as LTCUSD is working on
a buy signal according to the Bollinger Bands. All About The
Bollinger Bands And How To Use Them The Bollinger Bands aren’t just
a technical indicator, but act as a complete trading system. The
tool is primarily used to gauge volatility, as the bands tighten
and narrow when volatility is low. When the bands begin to expand,
it is a sign that volatility is returning. Beyond that, however,
the Bollinger Bands can also generate a buy and sell signal
depending on where price is relative to the upper and lower bands.
Each band is set at a +2 standard deviation from the middle-line,
which is a 20-period simple moving average. Related Reading:
Litecoin (LTC) Set To ‘Wake Up’, According To Legendary Trader’s
Forecast The idea is that only the strongest and most likely to be
sustainable moves make it outside the upper or lower band. A 6%
surge today in LTCUSD was enough to make it above the upper
Bollinger Band. A close above the upper band is necessary to
confirm the buy signal, especially when supported by higher than
normal volume. A volume downtrend has been broken, checking this
additional box in setting up the coin for a buy signal. Tony
Severino, CMT is the author of the CoinChartist (VIP) newsletter.
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insights and technical analysis education. Please note: Content is
educational and should not be considered investment advice.
Featured image from ChatGPT, Charts from TradingView.com
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