A proprietary risk analysis by InvestorsObserver has deemed Litecoin Cash (LCC) a high risk cryptocurrency investment based on its price movement over the past 24 hours. The system analyzes factors like trading volume, market capitalization, and price volatility to gauge a coin’s susceptibility to manipulation.
Over the last day, LCC’s price dropped nearly 65% to $0.00377. This significant shift occurred alongside below-average trading volume and an increase in market capitalization to $2.99 million. The mismatch between the substantial price drop and the relatively light trading activity and rising market cap gives Litecoin Cash its high risk rating.
For traders focused on risk management, LCC’s score indicates it may currently be vulnerable to pump and dump schemes or other manipulation tactics. The analytics provide an objective measure to avoid assets deemed as excessively high risk due to abnormal trading patterns.
However, the risk rating system does not account for technological advantages or other fundamental factors that may make a coin more or less valuable long-term. The gauge is most useful for short-term traders looking to steer clear of quantifiably high risk assets based solely on recent statistically significant price anomalies.
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