Although the majority of assets in the cryptocurrency sector have been underperforming in recent days or even weeks, some represent a particularly poor choice for crypto trading this week due to various internal and external factors causing their substandard outlook in the short term.
Indeed, Finbold has analyzed the crypto market to arrive at the list of four crypto assets to avoid trading this week, taking into account indicators such as the CoinGlass relative strength index (RSI) overbought heatmap, risk analysis, relevant ecosystem events, and other related developments.
#1 Terra Classic (LUNC)
With the news of Terraform Labs, the company behind the failed Terra (LUNA) cryptocurrency and the TerraUSD stablecoin, filing for Chapter 11 bankruptcy in the United States on January 21, it might be a good idea to avoid trading its token Terra Classic (LUNC), at least for now.
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Indeed, amid the filing, which Terraform Labs said was part of its effort to continue operating “while navigating ongoing legal proceedings,” LUNC is changing hands at $0.0001, down 8.69% on the day, as well as declining 16.3% across the week and losing 37.68% over the month.
#2 UMA (UMA)
Despite the rapid growth of its ecosystem and funding, UMA (UMA), the native crypto of the blockchain oracle that enables Universal Market Access, has been in the RSI overbought zone in the past 24 hours, coinciding with a massive 12.41% price decline during the same period.
As such, this decline has stopped the crypto’s advance from the past week that has seen it rally a whopping 142.88% in seven days and accumulate a gain of 133.65% on its monthly chart, with its current price at $5.02, according to the most recent information retrieved by Finbold on January 22.
#3 Kaspa (KAS)
Meanwhile, Kaspa (KAS) has recently experienced massive supply inflation of 163% from the reported 8.5 billion KAS in circulation on June 2022, ending up at the current 22.41 billion KAS in circulating supply, according to the latest information from the crypto monitoring platform CoinMarketCap.
At press time, Kaspa was trading at the price of $0.1, which indicates a drop of 4.33% in the last 24 hours, adding up to the weekly loss of 9.96% and a decline of 7.08% across the previous month, as per the most recent data retrieved by Finbold on January 22.
#4 PRivaCY Coin (PRCY)
Finally, PRivaCY Coin (PRCY), the native asset of the privacy blockchain that deploys technologies like Bulletproof, Haprocates Protofol, mandatory stealth addresses and transactions, RingCT & Ring Signatures in a staking chain, has exercised increased volatility, representing high trading risk.
As things stand, PRCY is presently changing hands at the price of $0.027, which is a decline of 4.41% on the day, in addition to losing 9.88% in the last week and dropping 21.76% across the previous month, as the most recent chart patterns demonstrate.
Conclusion
Overall, it might be wise to avoid trading the above crypto assets this week, but it is important to remember that things in this industry can sometimes change on a whim, which is why carrying out one’s own research before investing is essential.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
