One of the most popular technical indexes among traders suggests that some of the top altcoins by market capitalization-including Ethereum, Litecoin, Binance Coin, Cardano, Monero, Dash, and Ontology-are on the cusp of high volatility.
Over the last week the cryptocurrency market entered a consolidation period following a steep market decline on Sept. 24.
Now, the market seems to have stabilized within a trading range and a particular indicator is signaling that a period of high volatility is on the horizon.
The Bollinger bands, a technical analysis tool defined by a set of two standard deviation lines and a simple moving average, appears to be squeezing on the 4-hour charts of some of the top cryptocurrencies by market capitalization.
Squeezes are indicative of periods of low volatility and are typically succeeded by periods of high volatility.
Trading within these support and resistance levels poses high risk exposure.
Breaking the current support level could push LTC further down to $49 or $44, but if it breaks above resistance it could raise up to $64 or $71. Despite the different announcements that Binance made recently, its native currency is consolidating like the rest of the market.
Moving below support could take it down to $4.20 or $3.80 while moving above resistance could take it up to $5.45 or $6. Finally, Ontology's price action is behaving similar to the cryptocurrencies previously analyzed.
Under these conditions it is unknown the direction that the market will take.
As the market decides where it will be heading next patience will play a key role for traders who want to benefit from the next major price swing.
Indicator suggests high volatility for ETH, LTC, BNB, ADA, XMR, DASH, ONT
Published on Oct 3, 2019
by Cryptoslate | Published on Coinage
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