Which Cryptocurrencies Should Investors Avoid?

Which Cryptocurrencies Should Investors Avoid This Week?

As the cryptocurrency market concludes the week, several assets have faced a decline in their price performance. However, beyond this temporary downturn, certain cryptocurrencies may present less favorable investment opportunities due to additional factors. Investors are advised to exercise caution with these specific cryptocurrencies:

PEPE: High Risk due to Speculative Nature

PEPE, a speculative meme coin, has experienced short-term gains driven by social media hype. However, it is also susceptible to sharp declines. Recently, a large transfer of 400 billion tokens ($4.22 million) to Binance has raised concerns about increased selling pressure. PEPE is currently trading at $0.000009975, with a 5.29% drop in the past 24 hours and a 15.80% decline over the past week.

Wormhole (W): Token Release Concerns

Wormhole, a cross-chain interaction protocol, is expected to release approximately 612.12 million tokens soon. This could lead to increased selling pressure as investors may choose to liquidate their holdings, potentially impacting the price negatively. Wormhole is currently trading at $0.2357, with a 3.99% drop in the past 24 hours, an 18.03% drop in the past week, and a 34.93% decline over the past month.

IMX: Token Release and Marketplace Closure

The Immutable (IMX) platform is preparing to release 32.47 million tokens and will be closing its Marketplace on August 13. This could disrupt user activities and impact the price of IMX. It is currently trading at $1.33, with a 2.96% drop in the past 24 hours, an 11.54% decline over the past week, and a 13.12% drop in the past month.

Investment Considerations

Investors should consider the following strategies based on these market conditions:

• Avoid trading PEPE, Wormhole, and IMX in the short term due to potential selling pressure.
• Monitor whale movements and token releases for potential indicators of price drops.
• Diversify portfolios to reduce risks associated with speculative and volatile assets.

Given these concerns, it may be advisable to refrain from trading these three cryptocurrencies in the near term or to proceed with caution. The aforementioned factors could negatively affect their price performance, warranting prudent consideration before investing.