As the week concludes in the cryptocurrency market, several assets are exhibiting a downturn in their price performance. This trend is noticeable in sector-leading assets like Bitcoin (BTC). However, apart from the temporary slump, some cryptocurrencies could become less appealing investments in the upcoming week due to additional factors. Investors should be cautious with these specific cryptocurrencies.
Why Is PEPE Risky?
Pepe (PEPE), a speculative meme coin, has seen significant short-term gains fueled by social media buzz. However, it is also prone to steep declines. Recently, a whale moved 400 billion tokens, equivalent to $4.22 million, to the Binance exchange, potentially increasing selling pressure. After breaking its main support level of $0.00001075, PEPE was trading at $0.000009975 at the time of writing. The token has experienced a 5.29% drop in the last 24 hours and a 15.80% decline over the past week, causing concern among investors.
What Challenges Does Wormhole Face?
Wormhole (W), a cross-chain interaction protocol, is set to release approximately 612.12 million tokens worth around $145 million soon. This release could lead to increased selling pressure as investors may opt to liquidate their holdings, negatively impacting the price in the short term. Wormhole is currently trading at $0.2357, having seen a 3.99% drop in the last 24 hours, an 18.03% drop in the past week, and a 34.93% decline over the past month.
IMX Token Release
The Immutable (IMX) platform is preparing to release 32.47 million tokens valued at $43 million. Additionally, the IMX Marketplace is scheduled to close on August 13, which could disrupt user activities as they transition to other platforms. The price of IMX is currently $1.33, recording a 2.96% drop in the last 24 hours, an 11.54% decline over the past week, and a 13.12% drop in the past month.
Investment Strategies
Investors should consider the following strategies based on the current market conditions:
- Avoid trading PEPE, Wormhole, and IMX in the short term due to increasing selling pressure.
- Monitor whale movements and large token releases as indicators for potential price drops.
- Diversify portfolios to mitigate risks associated with speculative and volatile assets.
Given the above considerations, it may be prudent to steer clear of trading these three cryptocurrencies next week or, at the very least, approach them cautiously. Various factors could negatively affect their price performance, warranting careful assessment.