Skip to content

3 cryptocurrencies to avoid trading this week

3 cryptocurrencies to avoid trading this week

Bitcoin (BTC) reached a new multi-year high at $47,281 on January 8, 2024. Following its leadership, some cryptocurrencies have traded at higher prices and are threatening a retracement.

While most people wait for good price performance to deploy capital into a given cryptocurrency, smart money avoids trading overextended speculative assets as part of a good risk management strategy.

Interestingly, investors can find cryptocurrencies to avoid trading this week using fundamental and technical analysis. In particular,‘overbought’ coins according to the Relative Strength Index (RSI).

Avoid trading ConstitutionDAO (PEOPLE)

ConstitutionDAO (PEOPLE) is the first cryptocurrency to avoid trading. The token has lost close to 17% in the last 24 hours, priced at $0.034 by press time.

Notably, the $178.16 million market cap PEOPLE has seen a daily volume of $316.16 million — 238% of its capitalization. According to CoinMarketCap, the DAO was an experiment and had already dissolved.

ConstitutionDAO (PEOPLE) stats. Source: CoinMarketCap

Despite its lack of use with the ConstitutionDAO’s dissolution, PEOPLE features as a strong asset, according to CoinGlass’ RSI heatmap on January 9.

PEOPLE: Crypto market RSI heatmap. Source: CoinGlass

Stacks (STX) is overbought in the weekly RSI

In this context, Stacks (STX) is increasing its momentum in the 24-hour time frame, with 69.42 RSI. However, the weekly RSI is close to its maximum level, at 98.22. This suggests a massively overbought token, prone to a mid-term retracement.

Following Bitcoin’s leadership, STX is trading at $1.96 by press time, up 2.73% in the last 24 hours.

STX: Crypto market RSI heatmap. Source: CoinGlass

Avoid trading Chromia (CHR) this week

In the meantime, Chromia (CHR) is back to an overbought status on the daily RSI, with 73.14 points. The token is up 19.87% on the day, trading at $0.26 at the time of publication.

CHR also shows an overbought weekly Relative Strength Index with 93.14 points.

CHR: Crypto market RSI heatmap. Source: CoinGlass

All things considered, knowing which cryptocurrencies to avoid is crucial in trading. Speculators should always monitor relevant indicators and understand what they are investing in.

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

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.