3 Overhyped Cryptos to Sell Before They Crash


  • The rally is overdone and with a cool-off long overdue, these are the cryptos to sell before a substantial correction:
  • Injective (INJ-USD): The market capitalization has surpassed its 2021 peak but the momentum has been broken.
  • Solar (SXP-USD): The top 20 holders owning 99.8% of SXP makes it a risky and overvalued crypto.
  • Render Token (RNDR-USD): Despite the bright long-term outlook, a pullback is likely in the next few weeks.
Cryptos to sell - 3 Overhyped Cryptos to Sell Before They Crash

Source: Chinnapong / Shutterstock

The latest rally has spurred a wave of excitement among investors, especially among speculative names, as rumors of a new crypto rally go around. However, I’d remain cautious as this rally is unlikely to continue for too long due to recession fears and underperformance among altcoins. The rally was triggered by the banking “crisis” last month, which is why Bitcoin (BTC-USD) was the largest beneficiary and outperformed most cryptos. Thus, risky projects aren’t likely to perform well in the near term, at least not until the monetary policy is looser, so I’d recommend investors closely analyze these cryptos as ones they may want to sell.

However, there are some crypto projects that have performed better than BTC. Quite a few speculative names have generated a lot of excitement and have climbed impressively in the past few weeks. But as the market cools and the buzz starts to wear off, these overhyped cryptos will be the first to decline. That includes heavily manipulated tokens and tokens with unsustainable tokenomics.

With that in mind, here are three such cryptos to sell:

INJ-USB Injective $8.56
SXP-USD Solar $0.000019
RNDR-USD Render Token $2.37

Injective (INJ)

Logo for Injective Protocol (INJ-USD)
Source: Shutterstock

Injective (INJ-USD) is among the hottest cryptocurrencies right now. It is a blockchain that specializes in decentralized finance (DeFi) and, as CoinMarketCap explains, “…uniquely provides powerful core financial infrastructure primitives that applications can leverage, including a fully decentralized MEV-resistant on-chain orderbook. In addition, all forms of financial markets such as spot, perpetual, futures and options are fully on-chain. The decentralized cross-chain bridging infrastructure is compatible with Ethereum, IBC-enabled blockchains, and non EVM chains such as Solana.”

It’s a very promising project due to the rise of DeFi and its interoperability with the top blockchains. It also supports auto-executing smart contracts and can sustain 10,000 transactions per second (TPS).

However, in this range, it seems very overvalued. While the price may not be at an all-time high, the market capitalization has far surpassed its 2021 high of $621 million and currently sits above $680 million. It has also failed to break its previous peak in the latest rally, while the inflation rate of the token is very high, comparing the price action to its market cap.

I believe the project is simply too hot right now and is overdue for a major cool-off in the long run.

Solar (SXP)

An image of different crypto coins imposed with binary code
Source: Have a nice day Photo/Shutterstock

Solar (SXP-USD) is another promising crypto project. It is similar to blockchains like Solana (SOL-USD) and Ethereum (ETH-USD), but there is nothing too unique about this project that should allow it to retain so much of its value after the recent rally.

There are also some red flags about Solar that investors should note. One is that there are only 53 node operators. That’s not nearly enough to call the network “decentralized,” as most competing networks have thousands of node operators.

Furthermore, the price action seems heavily manipulated, and its top 20 holders collectively hold a massive 99.98% of the token’s supply.

With such metrics, it’s definitely one of the top cryptos to sell right now.

Render Token (RNDR)

Bitcoin BTC Gold coins with bills of euro banknotes and gold bullion. Bitcoin and gold lie on Euro banknotes. Asia Broadband is mixing crypto and gold with its AABBG token. Speculative Growth Stocks
Source: Ewa Studio / Shutterstock.com

If you’ve read my previous crypto columns, you likely know that I see Render Token (RNDR-USD) as one of the top long-term bets in the crypto market. Indeed, this crypto has been performing immensely in the past few weeks, and you’d be up 100%-plus if you invested when I first mentioned it back in March.

However, the cryptocurrency seems quite overbought right now. It is the best-performing crypto on the weekly scale on CoinMarketCap, and a cool-off seems long overdue. Going contrarian right now seems like the right choice.

Still, I would argue that Render Token has excellent long-term prospects due to the rising demand for GPU power. I see it worth much higher a few years from now. But for the short term, a correction is likely, so this one makes my list of cryptos to sell.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/3-overhyped-cryptos-to-sell-before-they-crash/.

©2023 InvestorPlace Media, LLC