Bitcoin reached its highest level in recent years at $47,281 yesterday. Following this leadership, some cryptocurrencies traded at higher prices. Some were threatened with withdrawal. While most people wait for good price performance to invest capital in a particular cryptocurrency, the smart money avoids trading overly speculative assets as part of a good risk management strategy. Crypto analyst Vinicius Barbosa warns investors about these 3 altcoins.
Stay away from trading ConstitutionDAO (PEOPLE)!
ConstitutionDAO (PEOPLE) is the first altcoin project to avoid trading. The token has lost nearly 17% of its value in the last 24 hours. At the time of writing, PEOPLE was trading at $0.034. In particular, PEOPLE, which has a market capitalization of $178.16 million, saw daily volume of $316.16 million. This corresponds to 238% of its capital. According to CoinMarketCap, the DAO was an experiment and had already disbanded. Despite not being used following the dissolution of ConstitutionDAO, PEOPLE stands out as a risky asset according to CoinGlass’ RSI heat map on January 9.
Altcoin Stacks (STX) is overbought on the weekly RSI
In this regard, Stacks (STX) is increasing its momentum with an RSI of 69.42 on the 24-hour time frame. However, the weekly RSI is close to its maximum level at 98.22. This suggests that it is a massively overbought token that is prone to a medium-term pullback. Following Bitcoin’s lead, STX increased by 2.73% in the last 24 hours. Thus, the altcoin is changing hands at $1.96 at the time of writing.
Stay away from trading Chromia (CHR) this week
Meanwhile, Chromia (CHR) is back to overbought status on the daily RSI with a score of 73.14. The altcoin increased by 19.87% during the day. Accordingly, the token was trading at $0.26 at the time of writing. CHR is also overbought on the weekly Relative Strength Index with a score of 93.14.
All things considered, knowing which cryptocurrencies to avoid is crucial in trading. It is important for traders to always monitor relevant indicators and understand what they are investing in.
The opinions and predictions in the article belong to the analysts and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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