Amid signs of hope for crypto investors, technical and fundamental analyses suggest speculators should avoid trading four cryptocurrencies next week. Essentially, the following cryptocurrencies are currently riskier bets than other projects.
In this context, avoiding trading riskier projects helps protect investors in an already uncertain and highly volatile market. Traders interested in these cryptocurrencies can wait for better opportunities in a clearer scenario.
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Currently, only two cryptocurrencies have an overbought Relative Strength Index (RSI) status, according to CoinGlass’s 24-hour heatmap. The first is UMA, an oracle blockchain competing with Chainlink (LINK), trading at $5.41 by press time.
Interestingly, UMA surged by 15.7% in the past 24 hours, which placed the token in the overbought zone. Besides the 74.62 24-hour RSI points, UMA is also overbought in the weekly time frame with 86.21 points.
Second, Dusk looks overbought in all the three monitored time frames by CoinGlass, with around 77 RSI points. The low-cap token jumped 14.66% in the last 24 hours, trading at $0.28, and risks a correction soon.
Avoid trading the cryptocurrencies LUNC and LUNA next week
In the meantime, traders should also avoid trading Terra Classic and Terra for fundamental event-driven reasons. Both tokens have experienced a downfall since December 2023, entering a weak momentum in the RSI.
Notably, LUNC alone wiped $1 billion from its capitalization in nearly two months. On Sunday, documents revealed Terraform Labs filed for bankruptcy, affecting investors’ confidence in the related assets.
Nevertheless, it’s important to understand that the cryptocurrency market’s unpredictability could play in their favor. If these cryptocurrencies manage to absorb enough demand, they may experience value appreciation even under these conditions. Thus, investors must do their own research and make thoughtful decisions to thrive.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.