has been making headlines recently as the cryptocurrency market continues to fluctuate. On Friday, $LTC token saw a small increase of 0.73% to reach $86.29. While this may not seem like a significant change, it is important to consider the crypto coin’s volatility in the larger picture.
According to Investors Observer, Litecoin has a moderate volatility rank of 30, placing it in the bottom 30% of cryptocurrencies on the market. This means the ancient cryptocurrency is not as volatile as some other cryptocurrencies and is considered to be more stable. The Volatility Gauge takes into account that one day’s performance does not necessarily determine a cryptocurrency’s overall volatility.
Additionally, $LTC has a low reading on the Risk/Reward Gauge, indicating that the coin has moderate price swings and is well protected from price manipulation. This is good news for investors who are looking for a cryptocurrency with a relatively stable value.
The Resistance Factor
However, it’s worth noting that the 2nd oldest cryptocurrency behind Bitcoin, its currently trading near resistance. With support around $83.66 and resistance around $86.85, there is potential for selling pressures ahead as the coin may be getting over-extended
As a cryptocurrency, LTC exists on its own blockchain and is typically used for payments. Depending on the cryptocurrency, what those payments are used for may vary from general use to more specific uses in other sub-classes.
The Pros and Cons of Moderate Volatility
In conclusion, while Litecoin has seen a small increase on Friday, it’s important to keep in mind that the cryptocurrency market is highly dynamic. One day’s performance does not necessarily indicate the coin’s overall trend. However, the moderate volatility and low reading on the Risk/Reward Gauge have distinct advantages.
Mainly, it is a relatively stable investment option for those who are looking for a cryptocurrency with moderate price swings Litecoin is also well protected from price manipulation. The downside is the coin is currently trading near resistance, and it may be getting over-extended, It is the nature of this volatile industry, meaning investors should err on the side of caution.