The past week in the cryptocurrency market was a rough one. This week was characterized by significant volatility tied to ongoing events that impacted investor sentiment. Traders monitored the FOMC meeting for information on upcoming interest rate decisions, leading to increased uncertainty due to the Federal Reserve’s more hawkish stance. Consequently, Bitcoin’s (BTC-USD) price dropped below $25,000, with major altcoins also experiencing declines.
The market’s growing turbulence and increased scrutiny may result in more projects facing financial difficulties, or seeing their coins stagnant for an extended period. This crisis offers buying opportunities, but requires risk analysis as well. Investors should be just as focused on which cryptos to sell, as which cryptos to buy, in my view.
Now’s the time for investors to evaluate their portfolios, make informed decisions, and manage risks in an uncertain environment. Here are three cryptos to sell, for those looking to go just that.
| FIL-USD | Filecoin | $3.91 |
| AXS-USD | Axie Infinity | $5.43 |
| BNB-USD | BNB Coin | $247.63 |
Filecoin (FIL-USD)
High-risk Filecoin (FIL-USD) faces market challenges, prompting potential selling. Indeed, the poor performance of Filecoin has been persistent over the past few months. Investors have seen little improvement, with a downward price trend continuing. Notably, within just two weeks, Filecoin has experienced a decline of over 30%, and further losses are anticipated.
Why?
Well, analyzing the charts reveals a lack of bullish momentum since September 2021. Filecoin shows persistent bearish trend on 4-hour chart, confirmed by downward moving averages. In June, the market structure clearly shows a series of lower highs and lower lows. The attempted price surge beyond the $4.8 area in late May was effectively rejected. Thus, the technicals for this token are highly bearish.
Currently, FIL is trading below the 50% retracement level. While a potential bounce towards the $3.8 area is conceivable, a continued decline in prices appears more probable. Given these factors, investors should exercise caution and carefully assess the risk associated with Filecoin, and sell this token before it drops more.
Axie Infinity (AXS-USD)
Axie Infinity (AXS-USD) has garnered significant attention in the crypto market, but recent regulatory scrutiny has raised concerns among token holders.
The price of AXS has dropped over 36% in just two weeks, reaching near two-year lows, indicating a decline in investor confidence. The SEC’s classification of AXS as a potential security caused the drop in its value.
Pending U.S. court decisions, potential increased regulations, and delisting from U.S. platforms pose risks to AXS’s demand and liquidity. Thus, AXS token holders should exercise caution as regulatory changes unfold, making FIL another top crytpo to sell right now.
BNB Coin (BNB-USD)
Binance’s cryptocurrency faced a sharp 10% decline after the SEC filed a lawsuit against the exchange. The lawsuit alleges that Binance was involved in an illegal operation in the United States, contributing to its largest one-day drop this year. This decline reflects the ongoing crackdown by U.S. regulators on crypto companies.
Specifically, BNB Coin (BNB-USD) fell by 9.82% on June 12, reaching a two-month low of $275.29. The drop followed the SEC’s lawsuit, the second complaint against Binance after the earlier one by the Commodity Futures Trading Commission.
This past week, BNB’s value dropped nearly 12%, and it has experienced a decline of over 18% since April, as reported by CoinGecko. This downward trend is compounded by the increasing pressure from authorities in other countries. Binance ceased operations in the Netherlands and Cyprus, and is reportedly under investigation for “aggravated money laundering”.
Given the challenges faced by Binance, BNB coin is expected to experience downward pressure, making this the crypto that rounds out our list of tokens to sell.
On the date of publication, Julia Magas did not hold (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.
