- As the week draws to a close, the cryptocurrency market is witnessing a slowdown in the price performance of several assets, including the leading crypto Bitcoin.
- This reduction has prompted analysts to advise caution when considering certain altcoins.
- Ana Zirojevic, a noted crypto expert, has spotlighted three altcoins that are currently viewed as unprofitable trading options.
Cryptocurrency market’s downturn highlights potential risks for specific altcoins—caution advised in trading activities this week.
Pepe Coin (PEPE): High Volatility and Social Media Hype
Pepe Coin (PEPE) has garnered attention due to its highly speculative nature and substantial short-term gains. However, its price is significantly influenced by social media hype, leading to rapid declines. Recently, a whale moved 400 billion PEPE tokens worth $4.22 million to Binance, which could increase selling pressure. The token, trading at $0.000009975 at the time of writing, has seen a 5.29% drop in the last 24 hours and a 15.80% loss over the past week.
Sell-off Potential Increases Amid Whale Movements
The whale’s actions—having withdrawn 795.92 billion PEPE from Binance earlier—reflect a strategic profit-taking approach, highlighting the volatility and risk associated with PEPE investments. The total profit stands at $5.85 million, showcasing a return on investment (ROI) of 230%.
Wormhole (W): Imminent Token Unlock and Market Impact
Wormhole (W), a cross-chain interoperability protocol, is set to unlock approximately 612.12 million tokens valued at around $145 million. The anticipated token unlock may prompt investors to liquidate their holdings, potentially increasing selling pressure. Currently, Wormhole is trading at $0.2357, having experienced a 3.99% drop in one day, and an 18.03% decline over the past week.
Short-Term Price Suppression Due to Token Unlock
Market participants expect further downside pressure as the token unlock date approaches. This bearish outlook is driven by concerns over a short-term surplus in the market, which could diminish the token’s value further.
Immutable (IMX): Upcoming Emission and Marketplace Changes
Immutable (IMX), a prominent Blockchain platform, is on the verge of releasing 32.47 million tokens worth approximately $43 million. Additionally, the platform plans to shut down its IMX Marketplace on August 13, which may disrupt short-term operations as users migrate their activities. IMX is currently priced at $1.33, having seen an 11.54% drop over the last week.
Operational Disruptions and Market Adjustments
The impending token emission and marketplace closure pose risks of short-term volatility and operational hiccups. Analysts anticipate that these changes could result in further price depreciation.
Conclusion
In conclusion, the short-term outlook for these three altcoins—Pepe Coin, Wormhole, and Immutable—is fraught with uncertainty and potential downside risks. Investors are advised to exercise caution and conduct thorough research before committing to any investments in these assets. Market conditions and trends can shift unexpectedly, making informed decision-making imperative in the volatile crypto landscape.
