3 Cryptocurrencies to Avoid Trading Next 7 Days
Although crypto prices have been on the rise lately, its important to remember that the market can be quite unpredictable. Investors should understand that large price swings are typical in this field. With that in mind, lets discuss 3 cryptocurrencies you might want to steer clear of trading next seven days.
The Risk of Snowballing Declines
Buying cryptocurrencies that have recently dropped in value can be quite risky. These tokens could keep falling as more people panic and sell, creating a snowball effect. Given the current state of the market and the unpredictable nature of cryptocurrencies, its possible that some alternative coins may face even more declines.
3 Cryptocurrencies to Avoid
1. Arbitrum (ARB)
Arbitrum (ARB) serves as a second layer for Ethereums Web3 ecosystem, but its best to steer clear of trading it next week. The reason? Theres a massive token unlock event looming, unleashing over $2 billion worth of ARB into circulation. This influx effectively doubles the current supply of ARB tokens.
Whats concerning is that this is one of the largest single unlocks ever recorded by TokenUnlocksApp, especially when you consider it relative to the tokens market capitalization. Additionally, Arbitrum alone accounts for a whopping 86% of all cliff unlocks scheduled for next week, highlighting the significance of this event for the token.
Given these circumstances, ARB appears to be overbought and could potentially face a substantial drop soon. Its worth noting that its already down by 82% from its all-time high, indicating a volatile journey ahead.
2. NEAR Protocol (NEAR)
NEAR Protocol stands out as a unique layer-one blockchain. Its like a community-driven cloud computing hub, aiming to overcome the drawbacks that have been holding back other blockchains, like slow transaction speeds and limited interoperability.
However, its important to note that its currently down 67% from its peak value. As with many cryptocurrencies, its known for its high volatility. Additionally, its yearly inflation rate is relatively high at 21.60%.
If the price of Bitcoin (BTC) experiences a significant drop, theres a possibility that NEAR Protocol (NEAR) could also see a decline. This correlation often occurs in the cryptocurrency market, where movements in major cryptocurrencies like Bitcoin can influence the prices of altcoins such as NEAR.
Additionally, its worth noting that NEAR Protocols 14-day Relative Strength Index (RSI) is currently at 57.13. The RSI is a momentum indicator that measures the speed and change of price movements. A value of 50 is often considered neutral, suggesting that theres no strong buying or selling pressure at the moment for NEAR.
However, investors should interpret this in conjunction with other factors such as market trends, news developments, and overall sentiment. While the RSI indicates neutrality, external factors like changes in Bitcoins price could still impact NEARs performance. One of the 3 cryptocurrencies to avoid trading next week.
3. dogwifhat (WIF)
Dogwifhat (WIF) has recently grabbed attention with an astonishing and unexpected surge in performance over the last 20 days.
This meme coin, built on the Solana blockchain, has experienced a staggering increase of over 1,000% since February 24th, soaring from $0.297 to an all-time high of $3.55 today. Currently, WIF is trading at $2.36, but its important to note that its showing signs of being overbought according to the daily Relative Strength Index (RSI).
However, its crucial to understand that dogwifhat is essentially a speculative token without any real-world applications. Speculators buy it with the sole intention of selling it later at higher prices to others who have the same aim. This speculative behavior often leads to unsustainable growth, a phenomenon often referred to as the greater fool game by finance experts.
Given this context, investors should exercise caution when considering trading WIF next week. Theres a risk that early investors might decide to offload their tokens, triggering a potential crash in its price. The extreme volatility of WIF, currently at 67.26%, further emphasizes the need for careful consideration before engaging in trading activities involving this token. One of the 3 cryptocurrencies to avoid.
Where to Buy Cryptocurrencies?
For individuals eager to enter the cryptocurrency market, Bitget emerges as a reliable platform. Offering low fees, a user-friendly interface, and a straightforward onboarding process, Bitget provides a convenient experience for both novice and seasoned traders. Whether you are an experienced investor or a newcomer, Bitget offers a streamlined avenue to buy and trade cryptocurrencies in the dynamic and rapidly evolving market.
Read more: https://cryptoticker.io/en/3-cryptocurrencies-to-avoid-trading/
Text source: CryptoTicker
