Veteran trader John Bollinger believes that one of oldest altcoins is approaching “squeeze territory”
Veteran businessman John Bollinger have noted That Litecoin, one of the oldest cryptocurrencies, has been trading in a limited range for almost six months.
The “silver to Bitcoin’s gold” has now formed a squeeze on the weekly chart, according to Bollinger. Such periods of anemic price action are typically followed by periods of extreme volatility. A significant price plunge may start after the price of a certain asset breaks below the lower Bollinger band.
While Bollinger thinks that price structure is important in a squeeze, the price action emanating from the squeeze will define it.
The Bollinger band squeeze occurs after a long period of very low volatility.
Litecoin remains at 23rd place in terms of market capitalization. One of the oldest altcoins is currently valued at $3.9 billion. It is currently trading at $55 on the Bitstamp exchange.
Longtime Bitcoin enthusiast Tuur Demeester has noted that he is not seeing a trend change in the LTC/BTC pair just yet.
Litecoin is down by a whopping 89.6% against Bitcoin since February 2018 and it seems to be caught in a declining trend.
After remaining among the top 10 biggest cryptocurrencies for a long period of time, Litecoin failed to catch up with other projects during the recent bull run.
Nevertheless, it is one of the few cryptocurrencies that has been around for over a decade despite stiff competition.
In June, the project finally implemented the privacy-focused MimbleWimble upgrade, but this led to some regulatory compliance issues.