3 cryptocurrencies to avoid trading next week
The cryptocurrency market is experiencing a bullish trend, marked by Bitcoin (BTC) reaching new all-time highs in a matter of days. The enthusiasm surrounding Bitcoin’s achievements has spilled over to the general market, with several cryptocurrencies catching up and recording significant gains.
Given this scenario, investors are likely searching for digital assets to trade with the potential for profitable returns. However, despite most assets trading in the green zone, not all offer an equal chance of yielding profits for traders.
In light of this, Finbold has identified three cryptocurrencies that should be avoided in the coming weeks. These warnings are based on the underlying fundamentals affecting the cryptocurrencies.
1. Chainlink (LINK): Chainlink’s price movement has deviated from the broader market trend, with a decrease in dormant circulation supply and a low in weighted sentiment. These factors suggest a significant change in investor sentiment or strategic market movements, potentially increasing selling pressure. The weighted sentiment for Chainlink reached a new low at -1.265, indicating a bearish sentiment not witnessed since July 2023.
2. VeChain (VET): While VeChain has shown long-term positive performance, the current trading status at the $0.04 level indicates short-term bearish sentiments, with weekly losses of around 4%. The consolidation below the $0.05 level introduces an element of indecisiveness, potentially leading to false breakouts. Traders should exercise caution during this phase and assess breakout strength before considering new positions.
3. Injective (INJ): Despite growing significantly over the past month, Injective missed out on capitalizing on the broader market upswing and experienced a 3% downturn in the last week. While the introduction of inEVM is seen as a positive development, traders should adopt a cautious stance and observe how the token will respond to these new changes before making strategic moves.
It’s important to note that the cryptocurrency market remains unpredictable, and the price trajectory of these assets may differ from the highlighted fundamentals. Traders should exercise caution and conduct their own research before engaging in trading activities.