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3 cryptocurrencies to avoid trading next week

3 cryptocurrencies to avoid trading next week

While the cryptocurrency sector presents numerous opportunities for traders and investors, it is crucial to acknowledge the inherent risks associated with it. Although some cryptocurrencies hold great potential, others may warrant cautious trading in the near future. 

Having said that, it is important to navigate this dynamic industry with a comprehensive understanding of its complexities to make informed decisions.

In that context, Finbold carried out a comprehensive analysis of the current crypto market circumstances, pinpointing three digital assets that investors are advised to watch carefully over the next week.

Pepe (PEPE)

Some may be surprised that PEPE is on this list, given the meme coin’s astronomical price rise earlier this year. 

However, it is important to remember that the majority of meme-inspired cryptocurrencies see their prices driven by social media hype. In other words, these assets solely rely on internet memes for branding and marketing. 

Furthermore, even the team behind the PEPE project describes the asset as “a meme coin with no intrinsic value or expectation of financial return.” This basically means that buying and selling such a cryptocurrency is gambling, rather than trading

At the time of writing, Pepecoin was trading at $0.000001748, up 16.8% on the day. On a monthly basis, the meme crypto rose nearly 90%. 

PEPE 1-month price chart. Source: CoinMarketCap

Despite its recent returns, it is advisable to avoid trading PEPE, as there is no evidence its latest gains will not be eradicated, just like after its record-breaking rally earlier this year.

Kusama (KSM)

Unsurprisingly, Kusama (KSM) once again surfaces as a cryptocurrency included in the list of digital assets to exercise caution when trading. 

Labeled as a “canary network” for Polkadot (DOT), KSM continues to receive poor evaluations at crypto rating platforms. Notably, Kusama is rated with an ‘E’ or ‘very weak’ on Weiss Ratings, a platform focused on offering risk/reward ratings for hundreds of cryptocurrencies. The assessments are based on tech adoption and market performance grades of a specific asset. 

At the time of publication, Kusama was up 6.1% on the day at $25.62. The crypto asset gained 5% over the past week and more than 14% over the month. 

Over the past year, KSM lost 46% of its value and has been outperformed by nearly 90% of the top 100 crypto assets during that period. 

At the moment, Kusama is trading below its 200-day simple moving average (MA), indicating that its average price over the past 200 days is currently lower than the current market price, implying a potentially bearish trend. 

KSM 1-month price chart. Source: Finbold

NEAR Protocol (NEAR)

Near Protocol (NEAR), is a decentralized application (dApp) platform focused on bringing decentralized finance (DeFi) to the masses. Like KSM, NEAR also carries a weak rating on Weiss, due to a poor ‘D’ grade for both market performance and tech adoption.

At press time, NEAR rose over 16% to $1.57, fueled by a broader crypto market rally. 

The token saw similar returns over the past week, while its monthly gains stood at more than 30%. 

NEAR 1-month price chart. Source: Finbold

At the end of the second quarter, the protocol’s treasury plummeted sharply to $900 million, following a steep drop in its NEAR tokens to below $1.30 earlier this month. The cryptocurrency is outmatched by 94% of the top 100 assets over the past year. 

Final words

In the face of the challenges faced by the aforementioned digital assets, it is crucial to acknowledge the dynamic nature of the cryptocurrency sector. Vigilance and thorough research are essential in making informed investment decisions, as the landscape can rapidly evolve.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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