Investing in cryptocurrencies and trading crypto can be risky, due to it still being an experimental financial ecosystem in a borderless market that never sleeps. More than knowing what projects investors should buy, knowing which to avoid can save speculators from accruing huge losses.
With the intent to help investors in their due diligence, Finbold has looked into a few technical analysis (TA) indicators, summed up to fundamental knowledge of some digital assets, to arrive at the list of those that should be avoided for the next week.
PEPE 1-month price chart. Source: CoinMarketCap
The same fundamentals that motivated last month’s listing are still valid to the ‘Pepe the Frog’ token. However, PEPE is among the top gainers of the day by press time, with gains superior to 10% in the last 24 hours and 30% in the last seven days — creating a good opportunity for older holders to apply their exit strategies.
It is possible that PEPE’s price continue to go up in the short term, as the current surge could attract fresh capital, but chances are high that last month’s downtrend continue after the current relief.
Bluzelle (BLZ)
Bluzelle (BLZ) presents itself as “a decentralized storage network for the creator economy” and recently its price has been highly affected by DWF Labs’ market-making, according to multiple reports by the analysis platform SpotOnChain. BLZ’s price immediately responds to DWF’s purchases and dumps — which creates higher risks for retail investors.
Moreover, the Relative Strength Index (RSI) from Coinglass also classifies Bluzelle as overbought in a 1-week timeframe. This means that BLZ could see a price correction at any moment, according to this TA indicator alone.
RSI 1-week Heatmap, overbought crypto. Source: Coinglass
Interestingly, Tron (TRX), THORChain (RUNE), LeverFi (LEVER), and Aragon (ANT) are also set as overbought, and a safer approach to investors could be to also avoid buying them, although it would be necessary to have a deeper analysis considering other factors.
Mixin (XIN)
Early this week, on September 23, the database of Mixin Network’s (XIN) cloud service provider was attacked by hackers, resulting in the loss of over $200 million in digital assets.
[Announcement] In the early morning of September 23, 2023 Hong Kong time, the database of Mixin Network's cloud service provider was attacked by hackers, resulting in the loss of some assets on the mainnet. We have contacted Google and blockchain security company @SlowMist_Team…
— Mixin Kernel (@MixinKernel) September 25, 2023Meanwhile, the token XIN lost over 25% of its value in the last seven days, as investors lost their trust in the project.
XIN 1-week price chart. Source: Finbold
Despite the Mixin team stating that losses are actually lower than previously expected, a post on X (formerly Twitter) is still recommending traders and users to don’t use the network, either for transactions or market making. This brings XIN to this list of three cryptocurrencies to avoid buying next week.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
