At some specific moments, the best decision a cryptocurrency investor can make is to avoid trading certain cryptocurrencies. This is especially true at key points in uncertainty and trend definition. Knowing when to expect is vital to good risk management strategies despite the ever-present ‘Fear of Missing Out’. Crypto analyst Vinicius Barbosa advises traders to stay away from these 3 coins next week.
$52,000 with leading cryptocurrencyDon’t trade on offense!
First, Bitcoin (BTC) is a cryptocurrency that should be avoided in its current price zone. BTC is testing a key multi-year resistance near $52,200. This area has acted as an important price support and resistance in 2021. Following the uncertainty, Bitcoin has recorded a low exchange volume since February 14, when it entered this tight range. Everything is possible now. It is possible that BTC will pull back from the bull rally. Or it is possible that it will continue its upward trend. The best move here would probably be to wait for further price action to be identified.
Arkham (ARKM) in ‘overbought’ momentum
Looking at it another way, Arkham (ARKM) is trading with an overbought Relative Strength Index (RSI) on four different time frames. This is an indication of extreme strength often seen in bull markets. However, if the cryptocurrency starts to lose momentum on lower time frames, overbought usually precedes a trend reversal. So far ARKM is showing no signs of trend reversal. But the RSI is high enough for an immediate correction. The token reached $0.82, up 34.7% in the last week. Therefore, it would be beneficial for investors to stay away from trading ARKM at these prices.
Jupiter (JUP) in ‘oversold’ momentum
On the other hand, Jupiter (JUP) has an ‘oversold’ daily RSI of 29.94. JUP was trading at $0.51 at the time of writing, down 2.9%. Interestingly, Jupiter’s 4-hour RSI is neutral. It also indicates a trend reversal and is likely a buy signal. However, the team recently conducted a major airdrop for the token. This creates extra risks for JUP. Therefore, there is still a risk that early investors will proceed with such a sell-off. Therefore, it is better to stay away from trading with this cryptocurrency.
In this scenario of high speculation and uncertainty, it is important for investors to stay away from buying and selling the above three cryptocurrencies and wait for further developments.
The opinions and predictions in the article belong to the expert and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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