Avoid trading these 3 cryptocurrencies next week
Finbold has pinpointed three cryptocurrencies that traders should steer clear of next week due to upcoming significant token unlocks and sell-offs. These events have the potential to flood the market, resulting in heightened selling pressure and notable price fluctuations.
Seasoned participants in the cryptocurrency market pay close attention to factors such as demand and supply dynamics surrounding the tokens and assets they trade. By carefully considering these dynamics, investors can make informed decisions that maximize profits while effectively managing risks.
According to data from TokenUnlocksApp, there is a potential sell-off of $164.76 million in the next seven days starting from June 7. The largest token unlocks are scheduled for June 12 and June 14, releasing tokens worth $160.41 million. These two major releases make up 97.5% of the total amount of tokens being unlocked this week.
One of the cryptocurrencies to avoid is Aptos (APT), a layer-1 blockchain project developed by former Meta engineers. The unlock on June 12 will release 11.31 million APT tokens worth $103.48 million. The Foundation will receive a smaller portion of the unlock, while Community, Core contributors, and investors will receive varying amounts, totaling $25.69 million.
Another cryptocurrency to avoid trading is ImmutableX (IMX), which is set to have a significant unlock on June 14. This unlock will increase the supply of IMX by 1.7%, with 25.53 million tokens being released for ecosystem and project development.
Additionally, traders are advised to avoid trading XRP due to Ripple’s sell-offs. The company has already unlocked 1 billion XRP in June and plans to sell 400 million tokens, which could lead to strong selling pressure on the cryptocurrency.
It is important for traders to speculate on the potential economic impacts of these unlocks and sell-offs, as they could result in increased volatility and affect the risk-reward ratio. Proper risk management and knowing when to avoid trading specific cryptocurrencies are crucial in navigating the uncertain market conditions.
Disclaimer: This content does not constitute investment advice, as investing in cryptocurrencies is speculative and involves risks to your capital.
