The cryptocurrency market got a bit better on January 27 after doing poorly for two weeks since the Bitcoin spot ETF got approved.
There’s some good news for people who invest in cryptocurrencies, but experts say it’s not a good idea to trade four specific cryptocurrencies next week. These four are riskier to invest in compared to other cryptocurrencies right now.
In this situation, it’s safer for investors to stay away from risky projects to protect themselves in a market that’s already unpredictable and changes a lot. If you’re thinking about trading these cryptocurrencies, it might be better to wait for clearer chances.
Specifically, Ruby Currency thinks it’s best to avoid trading UMA (UMA), Dusk (DUSK), Terra Classic (LUNC), and Terra (LUNA) next week.
UMA – (UMA)
Right now, only two cryptocurrencies on CoinGlass’s 24-hour heatmap show they have too many buyers compared to sellers, based on their Relative Strength Index (RSI). One of them is UMA, a type of blockchain like Chainlink (LINK), and its current price is $5.41.
UMA went up by 15.7% on the last day, putting it in the overbought zone. Its 24-hour RSI is at 74.62 points, and its weekly RSI is at 86.21 points, both showing it’s overbought.
Dusk – (DUSK)
Secondly, according to CoinGlass, Dusk seems too expensive across all three time periods they’re watching, with an RSI (Relative Strength Index) of about 76 points. The low-value token rose by 14.67% in the past day, reaching $0.27 in trading, and it might need to drop in price soon.
Do not trade Cryptocurrencies LUNC and LUNA next week
For now, traders should steer clear of trading Terra Classic and Terra because they’ve been going down since December 2023 and are showing weak momentum in the RSI indicator.
In just under two months, LUNC lost $1 billion in its overall value. Terraform Labs, which filed for bankruptcy on Sunday, made investors worry about related assets.
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However, it’s important to know that the unpredictability of the cryptocurrency market could help them. If these cryptocurrencies become popular enough, they might increase in value even when the market is uncertain. So, investors should research and choose wisely to succeed.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
