After a strong start, cryptocurrencies have experienced sideways trading in the first half of 2023. However, the recent downturn in May has impacted many cryptocurrencies. Safe and practical crypto projects have been less affected, while investors have been selling off risky and outdated names to rebalance their portfolios.
While the crypto market shows long-term promise due to upcoming events such as the Bitcoin (BTC-USD) halving and expected rate cuts, it’s important to assess the potential of individual projects. It may be wise to sell tokens that are currently overhyped or deemed risky to mitigate risk. Here are three cryptocurrencies to consider selling in June.
| PEPE-USD | Pepe | $0.000001024 |
| SHIB-USD | Shiba Inu | $0.00000684 |
| DOGE-USD | Dogecoin | $0.06239 |
Pepe (PEPE-USD)
Pepe (PEPE-USD) is currently a popular cryptocurrency, following the trend of meme-inspired coins that gained prominence during the pandemic, led by Dogecoin (DOGE-USD).
These meme-inspired cryptocurrencies, including Pepe, share common traits. Their practical applications are either limited or nonexistent. Their value is primarily driven by their popularity in memes. Pepe, originating from the comic Boy’s Club, has been adopted by various movements, including the Hong Kong protests, but its association with the alt-right movement goes against the creator’s original intentions.
Pepe Coin, a meme cryptocurrency, experienced a significant surge in early May, but its value has since declined. The interest in meme coins has dwindled, indicating further potential decline for Pepe Coin. The turnover rate of its market capitalization has slowed, and Ethereum transaction fees related to meme coin trading have decreased by 50%.
Pepe’s appeal has faded, and its value continues to decline without a significant catalyst. It’s wise to avoid this token as investors shift focus to more promising opportunities.
Shiba Inu (SHIB-USD)
Shiba Inu (SHIB-USD) emerged as a meme-inspired cryptocurrency, similar to Dogecoin, during the peak of meme coin popularity. Despite being marketed as a potential rival to Dogecoin, Shiba Inu is primarily known for its humorous origins and lacks substantial differentiation.
The tale of Shiba Inu lacks intrigue. It centers around a charismatic canine, enticing investors to embrace tokens featuring its likeness. This strategy proved successful for a brief period, fueled by pandemic-induced excess and economic stimuli. However, as 2023 progressed, Shiba Inu’s performance plateaued. The allure has faded, leaving behind lingering risks.
Having declined over 80% from its peak, Shiba Inu faces a period of uncertainty ahead. Despite expectations of benefiting from Dogecoin’s popularity, the token failed to gain traction, especially as Elon Musk revealed no ownership of SHIB. Its value and presence on various exchanges raise questions, considering its lack of practical utility. Price fluctuations primarily stem from unpredictable hype generated by influential individuals’ tweets. Additionally, SHIB lacks a clear competitive edge in a crowded crypto market.
Dogecoin (DOGE-USD)
Most cryptocurrencies, including Dogecoin (DOGE-USD) face a common challenge: the lack of a clear mainstream use case for widespread adoption. Without practical applications, it becomes challenging to maintain value, relying mainly on speculators hoping for future price increases. Dogecoin, for instance, is accepted by only a small number of merchants globally, highlighting its limited penetration.
Currently, the digital asset trades at around $0.67 cents, with its 50-day moving average at 7.55 cents and 200-day moving average at 8.09 cents. To maintain upward momentum, the bulls must assert themselves. However, if support at 6.5 cents weakens, there is a risk of further downside movement.
Binance, the largest crypto exchange, is currently facing a lawsuit from the SEC for deceptive practices, reflecting a wider effort by the SEC to regulate the cryptocurrency industry. This regulatory crackdown has eroded trust in the crypto sphere. As a speculative token without a clear use case, Dogecoin may struggle to recover amidst these industry challenges, if it recovers at all.
On the date of publication, Chris MacDonald 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.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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