3 CRYPTOCURRENCIES YOU SHOULD AVOID TRADING NEXT WEEK!
Solid risk management is usually the foundation of a successful cryptocurrency trading strategy. Avoiding unnecessary risk is the key to success when speculating in the unpredictable, highly volatile and rapidly changing cryptocurrency market.
General risk management strategies are varied. Avoiding trading overheated cryptocurrencies is one of them, proving useful in preventing possible trend changes.
1. Arbitration (ARB)
The Arbitrum cryptocurrency is overheated in the daily and weekly RSI with 75.85 and 79.68 points respectively. It is noticeable that the 4-hour chart is already losing momentum, registering a neutral status after losing strength. ARB is trading at $1.94 at the time of publication, up 3.46% in the last 24 hours.
2. Sei Network (SEI)
Sei Network is another cryptocurrency to avoid next week, with an extremely overbought weekly RSI status of 92.24. Its SEI token fell 10.41%, trading at $0.72 at press time. Thus, there has already been a loss of momentum with the RSI below 50 on the 4-hour chart.
3. Internet Computer Protocol (ICP)
Meanwhile, the Internet Computer Protocol exhibits similar behavior to SEI, with the RSI 1 point lower for each time interval. The ICP stands at 48.65, 71.56 and 91.67 points on the 4-hour, 24-hour and 1-week charts respectively. Additionally, the token is trading at $13.45, down 5.27% on the day.
However, being overbought does not guarantee poor future performance. These cryptocurrencies may continue to rise in price despite the mentioned signals.
In conclusion, investors should avoid trading the three cryptocurrencies mentioned for a more conservative risk management strategy and to avoid unnecessary exposure. It is important for traders to do their own research and understand how this may affect their operations.
đDon't risk your money! đ°
