The cryptocurrency market has experienced ups and downs over the past week. Therefore, it showed the expected volatility that is natural for this area. Some altcoin projects carry higher risk than others. According to crypto analyst Vinicius Barbosa, traders should avoid trading these coins to improve their results.
Stay away from dogwifhat (WIF) next week!
cryptokoin.comAs you follow from , dogwifhat (WIF) has attracted attention in the last 20 days. He conquered the spotlight with an outstanding performance. The Solana-based meme coin gained over 1,000% from $0.297 on February 24 to today’s all-time high of $3.55. At the time of this writing, WIF was trading at $2.55. The token is overbought on the daily Relative Strength Index (RSI).
However, dogwifhat is a completely speculative token with no concrete use case. Speculators buy only with the expectation of selling at higher prices to someone with the same intent. Essentially, this creates unsustainable growth, often described by financial experts as the “big fool’s game.” In this scenario, it is possible that early buyers will sell their tokens, causing a crash. Therefore, it would be beneficial for investors to stay away from WIF transactions next week.
Second risky altcoin: Arbitrum (ARB)
Arbitrum is a layer-2 for Ethereum’s Web3 ecosystem. It is necessary to stay away from this token next week. The reason for this is that a major token unlock event will take place in ARB. The altcoin will dump over $2 billion worth of tokens into the market. This will effectively double its circulating supply. Worryingly, this is one of the largest single unlocks by token capitalization. Moreover, Arbitrum is responsible for 86% of next week’s cliff locks. So it shows how representative this is for the token.
Such massive inflation will likely have a meaningful impact on the altcoin price. In other words, it is possible to create a strong sales pressure. ARB was changing hands for $1.82 at the time of writing. The token soon made a move to test the psychological resistance of $2.0.
Last ranked altcoin: Loopring (LRC)
Loopring (LRC) has become the third altcoin to avoid trading next week, considering its overbought status. Loopring is a protocol that helps create decentralized exchanges in DeFi. The project has a market value of approximately $700 million. The token named LRC has a daily and weekly RSI value of 78 points. This shows that it is an overbought asset. Therefore, it may face a trend reversal at any time, falling from the current $0.5 per token.
While it’s a good idea to stay away from these cryptos for now, it’s possible that the situation could change very quickly. Therefore, it is important to observe market sentiment and research any asset thoroughly before investing.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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