- The veteran crypto Litecoin surfaced as a quicker alternative to Bitcoin in 2011.
- Mathematician John Bollinger uses his invention to evaluate LTC’s performance.
- Litecoin tops XRP, ADA, SHIB, and other adults in a crucial metric, Santiment reveals.
The famous mathematician and financial analyst John Bollinger is widely regarded as the inventor of the Bollinger Bands (BOL), a technical trading tool that is useful in the ever-shifting cryptocurrency landscape.
Launched in the early 1980s, Bollinger Bands were first applied to traditional stock and bond markets, attempting to answer the question: Are prices high or low on a relative basis? To answer this question, BOL employs trading envelopes, which narrow or expand, thus implying the asset’s price volatility.
LiteCoin Takes On The Bollinger Bands Test
Litecoin (LTC), one of the earliest alternative cryptocurrencies in the market, has often been mulled as a haven during drastic crypto market downturns. However, the $5.48 billion sporting OG altcoin LTC is still 17% down from a year ago, raising concerns among Litecoin holders.
A few days back, a crypto trader called Bamboo presented John Bollinger with a task. Based on the most recent monthly LTC price chart, the follower asked the financial virtuoso and celebrity mathematician about LTC’s prospects. After a short discussion on settings to get the full picture, Bollinger posted his verdict.
“Squeezy, squeezy. About time for LTC to wake up,” declares Bollinger, as the chart suggested very narrow Bollinger Bands. Put in simpler terms, tightened Bollinger Bands imply steady price performance and low price fluctuations. On the contrary, the Bollinger Bands widen when the coin’s volatility triggers a sudden rise or a heavy downturn.
LiteCoin Prevails as Top Choice for HODLers
In another related instance, the blockchain intelligence platform Santiment counted the total number of non-empty crypto wallets over a 10-year period. While some chains included haven’t been around for ten years, this metric reveals which crypto is considered a long-term investment or a store of value.
Intriguingly, crypto aficionados have shown the most loyalty to Litecoin, which currently has 8.08M of non-zero balance crypto wallets on LTC’s native chain. To compare, XRP has 5.24M wallets on XRP Ledger, while Dogecoin (DOGE), founded just two years after Litecoin, comprises 6.69M non-zero addresses.
Litecoin trades at $73.14 at press time, inking 1.5% gains over the past 24 hours. This positions Litecoin’s monthly performance in the green with a 5% upswing. Zooming out of the monthly charts, it’s fair to say that LTC is still over 80% behind its all-time peak of $410, claimed on May 10, 2021.
On the Flipside
- Unlike the leading asset, Bitcoin (BTC), Litecoin has lost some relevance over the years.
- Once considered the digital silver to BTC’s gold status, LTC is now the 21st crypto by global market capitalization.
Why This Matters
Derived from Bitcoin’s code, Litecoin has a four-times larger max supply of 84,000,000 and a quicker transaction system. These traits proved LTC to be a dominant asset in the altcoin markets.
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