The Cryptocurrency Market Shows Signs of Recovery
The cryptocurrency market has seen a slight recovery after a two-week period of poor performance following the approval of the Bitcoin spot ETF. However, there are still certain cryptocurrencies that you should avoid trading next week, according to technical and fundamental analyses.
Avoid Trading UMA (UMA)
UMA, an oracle blockchain that competes with Chainlink (LINK), is currently overbought. It has surged by 15.7% in the past 24 hours and has an overbought status in both the daily and weekly time frames.
Dusk (DUSK) Is Also Overbought
Dusk is another cryptocurrency that you should avoid trading next week. It is overbought in all three monitored time frames and has experienced a 14.66% jump in the last 24 hours.
Avoid Trading LUNC and LUNA
Traders should also steer clear of Terra Classic (LUNC) and Terra (LUNA) next week due to fundamental event-driven reasons. Both tokens have been experiencing a downward trend since December 2023 and have entered a weak momentum in terms of RSI.
LUNC alone has lost $1 billion in market capitalization in just under two months, and Terraform Labs, the company behind Terra, recently filed for bankruptcy, which has affected investor confidence.
Investors Must Be Cautious
While these cryptocurrencies may face challenges, it’s important to remember that the cryptocurrency market is unpredictable. If there is enough demand, these cryptocurrencies may still see value appreciation. However, investors should conduct their own research and make thoughtful decisions to thrive in this volatile market.
Hot Take: Proceed with Caution When Trading Cryptocurrencies Next Week
While the cryptocurrency market shows signs of recovery, there are still risks involved. UMA, Dusk, LUNC, and LUNA are currently riskier bets compared to other projects. It is advisable to avoid trading these cryptocurrencies next week to protect your investments in an uncertain and highly volatile market. Instead, wait for better opportunities in a clearer scenario. Remember to conduct your own research and make informed decisions to navigate the cryptocurrency market successfully.
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