Knowing which cryptocurrencies to invest resources like time and money is an art that sometimes helps investors to realize gains while trading in the cryptocurrency market. Moreover, knowing which crypto to avoid trading is as much an art, which could help traders avoid losing money in this vast space.
In this context, Finbold has analyzed the crypto market, taking into account key factors surrounding some digital assets to arrive at the list of those that crypto traders and investors should avoid for the next week, as a moment of high uncertainty could cause unpleasant surprises for both ‘bears’ and ‘bulls’.
This does not mean that these projects are either ‘bad’ or ‘good’, just that the current moment is probably not ideal for high-risk exposures to them.
Pepe (PEPE)
PEPE investors are panicking as the Ethereum address belonging to the team behind Pepe (“0xa34…f2ea0”) transferred 16.045 trillion PEPE worth $16.85M to four exchanges in Binance, OKX, KuCoin, and Bybit on August 24.
Notably, the token is a meme coin that surged in price earlier this year in a full speculative movement of increased buying demand for a digital asset with no clear ‘users-demand’. This makes the current move from its creator a real threat to PEPE’s price in the following days.
The rising fear was already reflected in the meme token prices on August 25, with PEPE losing over 17% of its value 24 hours after the team’s transaction, but still sitting among the top 100 cryptocurrencies by market cap. All according to CoinMarketCap’s Index.
Avalanche (AVAX)
Avalanche unlocked 9.54 million AVAX on August 26’s night, as part of the programmed token unlocks, reported by Finbold on August 21. The unlocked amount equals 2.77% of this cryptocurrency’s circulating supply of 344.05 million AVAX.
AVAX was priced as low as $9.97 12 hours before the tokens’ unlock, accumulating weekly losses superior to 8%, as the market is already pricing the possible effects of a meaningful sudden increase on its available supply.
BNB Chain (BNB)
Recently, over $30 million was liquidated in BNB, as BNB Chain’s native token plummeted. However, the threat of further liquidations still remains surfacing Binance’s digital asset. There are still 628,484.80 BNB ($136.13 million) in the vault on the Venus Protocol, that belongs to the missing hacker from 2022.
Notably, the next liquidation price is set to $198, while BNB was being traded at $216.68 on August 25. Meaning that a drop of 9% could trigger even more losses.
In November 2022, after the threatening position was created following the massive BNB hack, the Core Team of the BNB Chain proposed that this position’s liquidations shouldn’t be done organically, as it usually happens with borrowed positions, due to the high possible impact to BNB’s price.
Conclusion
While it would be a good idea to avoid the aforementioned cryptos for now, the situation can change dramatically very quickly, so it is important to observe the market sentiment and do thorough research on any asset prior to investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
