The cryptocurrency market underperformed for two weeks following the spot Bitcoin ETF approval. However, it made a slight recovery towards the end of last week. Amid signs of hope for crypto investors, technical and fundamental analysis suggest traders should avoid trading four altcoins this week, according to crypto analyst Vinicius Barbosa. The analyst notes that these cryptocurrencies are currently riskier bets than other projects.
The first high-risk altcoin: UMA (UMA)
According to CoinGlass’ 24-hour heat map, only two cryptocurrencies currently have overbought Relative Strength Index (RSI) status. The first is UMA, an oracle blockchain that competes with Chainlink (LINK). The token was trading at $5.20 at the time of writing. However, it increased by approximately 132% on its monthly chart. This placed the token in the overbought zone. UMA is overbought on the weekly time frame with 86.21 points as well as the 24-hour RSI score of 74.62.
Dusk (DUSK) is second on the risky crypto list
Dusk appears to be overbought, with an RSI score of around 77 on all three time frames tracked by CoinGlass. The low-cap altcoin was trading at $0.2632, down 5.5% in the last 24 hours. In addition, it increased by 40.22% in the weekly time period. Therefore, it risks a correction soon.
Terra’s LUNC and LUNA tokens are also on the risky crypto list
Meanwhile, investors should also avoid trading Terra Classic and Terra for fundamental event-driven reasons. cryptokoin.comAs you follow from , both altcoins have declined since December 2023. Additionally, the RSI has entered a weak momentum. Notably, LUNC alone erased $1 billion from its capitalization in about two months. Recent documents reveal that Terraform Labs has filed for bankruptcy. This naturally affected investors’ confidence in the relevant assets.
However, it is important to understand that the unpredictability of the cryptocurrency market may work in their favor. If these altcoin projects manage to attract enough demand, an increase in value is possible even under these conditions. Therefore, investors need to do their own research and make careful decisions to be successful.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.
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