3 Cryptocurrencies to Steer Clear of Trading Next Week
Finbold has identified 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, leading to heightened selling pressure and substantial price fluctuations.
Experienced participants in the cryptocurrency market closely monitor factors such as demand and supply dynamics when trading tokens and assets. By analyzing these dynamics, investors can make informed decisions that maximize profitability while effectively managing risks.
According to data from TokenUnlocksApp, there is a potential for $164.76 million in sell-offs over the next seven days starting from June 7. The largest unlocks are expected to take place on June 12 and June 14, releasing tokens worth $160.41 million. These two major releases account for 97.5% of the total amount of tokens being unlocked this week.
Aptos (APT) is the first cryptocurrency to be cautious of, as it is set to unlock 11.31 million APT worth $103.48 million on June 12. This unlock will increase Aptos’ supply by 2.6%, potentially creating significant selling pressure.
ImmutableX (IMX) is another cryptocurrency to avoid trading, with a significant unlock of 25.53 million IMX scheduled for June 14. This release will inflate the token’s supply by 1.7%.
Additionally, traders are advised to be cautious when trading XRP, as Ripple has already unlocked 1 billion XRP in June and plans to sell a portion of this amount. With 150 million XRP already moved and another 250 million tokens in its treasury account, Ripple’s activities could further impact the cryptocurrency’s price.
It is essential for traders to carefully consider the economic implications of these unlocks and sell-offs, as they may lead to increased volatility and affect the risk-reward ratio. Proper risk management is crucial in navigating the uncertainties of the cryptocurrency market.
Disclaimer: The information provided in this article should not be interpreted as investment advice. Investing in cryptocurrencies carries risks, and investors should be aware that their capital is at risk.