Important warnings came for three altcoins. There are promising cryptocurrencies. However, some cryptocurrencies would be better left untouched, at least for a certain period of time. Analyst Rudy Fares has identified cryptocurrencies to stay away from this week.
Why are cryptocurrencies risky?
It is important to recognize that cryptocurrencies are inherently risky due to their volatile nature. Prices rise and fall rapidly. It also makes the altcoin world a speculative investment route. There are news and technological changes at the point of legal regulation. Factors such as market sentiment and macroeconomic indicators significantly affect altcoin prices. Also, although it may seem tempting, it is necessary to have a comprehensive understanding of the market and its future prospects. Accordingly, buying crypto in a bear market is not always a good idea.
There are ideal times to buy cryptocurrencies or any asset. The most ideal time is when it is undervalued. It is a common observation among investors that when altcoin prices start to rise, fear of missing out (FOMO) kicks in, leading to inflated buys and potential exposure to market corrections. Therefore, it is necessary not to invest in altcoins at a high level. For traders, it would be a more prudent approach to buy while trading at lower support levels.
Altcoin Shiba Inu (SHIB)
Altcoin Shiba Inu (SHIB) is a meme coin that has gained a lot of attention over the past few weeks. SHIB prices have risen more than 7% over the past week. Also, most of the earnings have come in the last few days. However, such a price pattern would be risky.
It only makes sense when the price of a cryptocurrency rises sharply within a short period of time. This usually indicates potential price corrections or market adjustments. Therefore, right now would not be an ideal time to buy a Shiba Inu. Instead, investors may consider waiting for a price correction or even exploring other investment options.
Altcoin Quant (QNT)
Altcoin Quant (QNT) aims to solve scalability and performance challenges in the crypto space. It is also a crypto project that provides interoperability between different blockchains. QNT prices have risen 6% over the past seven days and most of the gains have come in recent days.
This sudden rise in prices seems to herald a price adjustment. Therefore, it would be a good strategy to wait for better prices before investing in QNT.
GMX (GMX)
Altcoin GMX or Gauss (formerly Gas Token) is a cryptocurrency used specifically for efficient value transfers within the Ethereum network. Despite the consolidation in the overall crypto market, GMX prices are on a steady upward trend.
However, if the crypto market continues its sideways movement or even falls, GMX will potentially experience a sharp price action. Therefore, looking at cryptocoin.com, just like with Quant, it would be wise for investors to hold off on GMX until a more affordable price point emerges.
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