Litecoin Rises 4 Spots in Liquidity Ranking – What You Need to Know
•Litecoin ranks #4 in liquidity as per Kaiko’s Q1 report.
•The altcoin has witnessed a surge in social dominance over the last few days.
•Data from Santiment showed that LTC’s market cap and volume have dropped since the beginning of April.
Litecoin Ranks 4th in Liquidity
A new research study conducted by Kaiko revealed that Litecoin (LTC) ranked fourth in terms of liquidity. The cryptocurrency moved up four spots since the previous quarter of 2023-Q4, making it one of the most liquid crypto assets on the market. Since the start of 2023, Litecoin has been performing fairly well and its liquidity ranking is just another testament to its overall success.
Social Dominance Surge
In addition to this positive development, data from Santiment showed that LTC’s social dominance has also seen an increase. This indicates that investors and traders are maintaining a largely positive outlook on Litecoin despite some recent drops in market capitalization and volume.
Market Cap and Volume Dropping
According to Santiment, at the time of writing, LTC had a market capitalization of $6,549,475,137 which was lower than its market cap at the beginning of April 2021. In terms of volume, Litecoin managed to rank third after Dogecoin [DOGE]. However, it was still seen witnessing a gradual drop over the last seven days suggesting lower LTC liquidity in the market when compared to other cryptocurrencies.
Relative Strength Index
The Relative Strength Index (RSI) for Litecoin stood at 52.51 and was seen falling towards neutral 50 line indicating lacklustre performance from the digital asset against other cryptocurrencies in short term trading environments.. Additionally, Moving Average Convergence Divergence (MACD) for LTC also witnessed bearish crossover which could further impact prices going forward if negative sentiment continues among investors or traders concerning LTC’s price movements.
Overall, while there may be some cause for concern due to recent drops in volume and market capitalization along with bearish indicators on technical charts such as MACD & RSI; Litecoins position as one of the leading liquid crypto assets suggests that this could be an opportune time for investors looking to gain exposure into this digital asset class without having to worry about low liquidity issues when trading or investing into these coins/tokens