The legendary technical analyst shared his analysis of a major altcoin approaching the constriction zone.
John Bollinger says calm 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. This type of calm price action is typically followed by very volatile cycles. Also, the LTC price may pick up momentum on the downside after falling 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 price 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.
In the midst of this, well-known Bitcoin supporter Tuur Demeester noted that he does not notice a change in the LTC/BTC trend now. Since February 2018, Litecoin has lost a surprising 89.6% compared to Bitcoin. It is currently on a downward trend. After spending a long time in the middle of the top 10 cryptocurrencies, Litecoin failed to beat other projects in the bull run. Despite fierce competition, it is still one of the few cryptocurrencies in existence for over a decade. The project finally rolled out the implicit MimbleWimble upgrade in June. However, this caused some difficulties 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 level of ATH. According to OKLink’s data, it saw ATH with a hash rate of 511.56 TH/s on September 22.
According to data from Santiment, the index of addresses investing 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 decrease in the number of addresses making transactions on a daily basis, the total measure of LTC across all processes 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 whaling processes. Santiment also revealed that for transactions over $100,000, the lowest daily number recorded in the period reviewed by LTC was 681 transactions on September 11. For whale processes over $1 million, this metric has been on the decline since the 616-high daily transactions on Sept. 12.
In the middle, 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%.