Avoid trading these 5 cryptocurrencies next week
The cryptocurrency market remains turbulent, marked by widespread uncertainty, as most digital assets exhibit increased volatility. Indeed, the market is eagerly awaiting a significant catalyst that can potentially ignite a price momentum in the upcoming days.
Amid the persistently bearish market conditions, Finbold has identified the following five cryptocurrencies to steer clear of in the upcoming week. These assets are characterized by elevated volatility and shaky fundamentals.
HNT, the native token of the Helium network, has exhibited heightened volatility over the past month, erasing gains that saw the token reach an all-time high in late 2022. Initially regarded as a promising venture in the cryptocurrency industry, Helium’s inception aimed to create a blockchain-based wireless network for IoT devices such as tracking chips and sensors.
Notably, the network has initiated significant developments that could influence HNT’s value. August commenced on a strong note for the token with news of its listing on Coinbase and adoption on the Solana (SOL) network, both contributing to the strengthening of the Helium ecosystem.
However, despite these favorable developments, HNT has struggled to maintain its gains, experiencing increased volatility in recent weeks. Furthermore, concerns about the network’s management persist, stemming from an initial investigation that alleged Helium insiders were accumulating wealth at the expense of the community.
By press time, HNT was trading at $1.54, having corrected by over 8% in the last seven days.
Foki (FLOKI) has endured a substantial decline in its standing amid the persisting bearish market conditions, with a more than 20% value drop in the past 30 days. Despite recent partnerships, including one with BitGo, most FlokiI investors are currently incurring losses as the meme cryptocurrency grapples with the market’s downturn.
This correction contributes to questions leveled at Floki and other meme coins due to their perceived lack of utility. Moreover, Floki faces an uncertain future influenced by various factors, including overall market sentiment.
By press time, Floki is valued at $0.000016, reflecting weekly losses of approximately 4%.
Kadena (KDA), a proof-of-work blockchain that blends Bitcoin’s PoW consensus mechanism to create a scalable Bitcoin (BTC) variant, has struggled to maintain its recent gains. Towards the end of August, KDA experienced a rally due to increased buying activity triggered by the news of Ledger’s support for the token, enabling users to move their coins from exchanges.
However, questions have arisen regarding Kadena’s relatively slower growth compared to other crypto projects like Ethereum (ETH). Notably, the network is focusing on institutional transactions and banking, leveraging its energy-efficient proof-of-work model. Despite the positive development, KDA remains volatile.
As of the latest data, KDA is valued at $0.45, with weekly losses exceeding 11%.
Enjin Coin (ENJ)
Enjin Coin (ENJ) has solidified its position as a key player in the non-fungible tokens (NFTS) revolution, especially within the gaming industry, by enabling developers to seamlessly integrate blockchain-based NFTs into their games and applications.
Recent developments concerning Enjin Coin include the Enjin team’s announcement of an update designed to facilitate the project’s transition from Efinity to the new Matrixchain. However, this development has not sparked a substantial price movement, as ENJ has exhibited increased volatility in recent weeks.
Like other metaverse tokens, ENJ remains an asset to approach with caution, given the sector’s overall decline. In fact, most metaverse tokens have seen their market capitalization plummet by nearly 90% between November 2021 and September 2023. Additionally, ENJ faces concerns related to issues such as security, privacy, community governance, and a lack of long-term HODLing incentives.
By press time, ENJ was trading at $0.23 with weekly losses of almost 5%.
The GMX (GMX) price has been consistently decreasing, erasing previous gains. GMX is designed as a cryptocurrency tailored for efficient value transfers, especially within the Ethereum network. Currently, GMX appears to lack essential fundamentals that could trigger a price rally in the upcoming week.
Given the prevailing market depression, it would be prudent to exercise caution when considering an investment in GMX, as the existing conditions may adversely affect the token’s value. By press time, GMX was trading at $33.07, reflecting a correction of over 10% in the past seven days.
It’s important to acknowledge that while the mentioned cryptocurrencies have exhibited heightened volatility, the crypto market is known for its rapid fluctuations, and circumstances can shift swiftly.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.