A few days ago, CoinDesk reported that experts weren’t worried about the doldrums cryptos have recently found themselves in. “While this technical drop may induce concern, given the robust uptrend over the past six months, it’s sensible to consider this merely a short-term correction,” stated in part SynFutures CEO Rachel Lin regarding the benchmark blockchain asset.

Given the intense loyalty that retail investors demonstrate toward cryptos, it’s not a surprising take. I’m almost certain that her assessment aligns with the majority opinion. Still, what’s worrying for the virtual currency complex is that regulatory pressure may be building.

Over the weekend, Coinbase (NASDAQ:COIN) CEO Brian Armstrong told the Financial Times that the U.S. Securities and Exchange Commission (SEC) requested that the platform halt trading in all cryptos except the original benchmark. Refusing to do so, the SEC then hit Coinbase with a lawsuit.

Combined with the Federal Reserve’s efforts in bringing down inflation decisively, the overall narrative isn’t particularly favorable to cryptos. Of course, you never want to say never in this highly charged arena. However, amid all the turmoil in the sector, I think this is the best philosophy: be smart out there.

Bitcoin (BTC-USD)

After the $29,000 level held for several days, Bitcoin (BTC-USD) in the late evening hours on Monday dipped into high 28K territory. To be sure, it’s not time to hit the panic button. Nevertheless, the market sent a clear message. Over the past 24 hours, BTC slipped nearly 2%. In the trailing seven days, BTC slid around 1%.

After market experts assumed a return above 30K, the opposite scenario materialized. Again, I don’t think it’s wise to hit the panic button. It’s just that I’m reminded of an age-old saying: eventually, the fundamentals matter.

While the Fed is aiming for gentle disinflation, that’s hardly a guaranteed outcome. Primarily, where the inflation rate is and where the central bank would like it to remain vastly different. Therefore, policymakers may need to be more aggressive in their monetary tightening. The market might sense this, sending risk-on assets like BTC downward. At this juncture, I’m going to be cautious since Bitcoin fell below its 50-day moving average. It might be better to wait for confirmation before moving in.

Ethereum (ETH-USD)

Given the importance of Bitcoin to practically all other cryptos, it’s no surprise that Ethereum (ETH-USD) tumbled in sympathy. In the trailing 24 hours, the number two virtual currency by market capitalization declined by more than 2%. Over the trailing seven days, ETH gave up more than 1% of its market value. However, it’s the psychological damage that’s more crucial.

For the last several weeks, the $1,900 level symbolized the delineation between optimism and pessimism. Sure enough, ETH’s 50 DMA crept near this benchmark at $1,861 at last count. However, ETH now trades hands at about $1,827, some 2% below the common gauge for near-term market health. More than likely, the bulls need to step up soon for Ethereum to avoid lingering technical damage.

Nevertheless, I’d wait for additional confirmation before moving in. If you look at data provided by Stockcharts.com, one of the glaring differences between the first quarter of this year and the present quarter is volume. Traders just aren’t interested in cryptos and it’s difficult to blame them given the regulatory and monetary policy headwinds.

Tether (USDT-USD)

While Bitcoin may be the sentiment benchmark for blockchain assets, Tether (USDT-USD) could be the most important name among all cryptos. As a stablecoin, Tether represents a crypto that’s pegged on a one-to-one ratio with the dollar. Basically, it’s the truest form of virtual currency, enabling traders to move in and out of positions via “digital dollars.”

Another factor that bolsters USDT’s integration is that it enables investors to keep their wealth in the decentralized ecosystem. Therefore, one doesn’t need to constantly conduct transactions in dollars. If you think about it, Tether is the grease that keeps the gears of the blockchain moving smoothly. However, this narrative may come under pressure during bearish cycles.

Investors – particularly newbie market participants – should realize that the entity overseeing Tether has never been audited. Indeed, BeInCrypto recently published an article blasting that in Q2, Tether the enterprise again avoided a full audit. Given the market position of USDT against all other cryptos, most investors apparently don’t care. Nevertheless, it’s something to keep in mind before you dump too much money into Tether.

XRP (XRP-USD)

After representing one of the top-performing cryptos, XRP (XRP-USD) finds itself taking a good-sized shot relative to the majors. In the past 24 hours, XRP gave up 3% of its market value. In the trailing one-week period, it slipped more than 1%. No, it’s not time to panic. However, those who are profitable in XRP may want to trim some exposure.

As advocates of cryptos will surely know, XRP skyrocketed several days ago with creator Ripple Labs securing a legal victory in its standoff with the SEC. Still, the regulatory agency isn’t backing down on its efforts to control the decentralized ecosystem. Further, if the SEC indeed asked Coinbase to stop trading in all blockchain assets other than Bitcoin, it sends a clear message.

When it comes to cryptos, the SEC wants things its way or the highway. Therefore, XRP investors might not have the chance to relax. In fact, many traders worry that XRP is already suffering from fading hype associated with the legal victory. You just want to be prudent here.

Solana (SOL-USD)

On a relative basis, Solana (SOL-USD) represents one of the better-performing cryptos available. However, on the surface level, it doesn’t appear that way. Over the past 24 hours, SOL lost more than 5% of market value, making the coin the worst performer during the aforementioned period among the top 10 digital assets by market cap. Interestingly, SOL stood at parity during the trailing week.

Now, when stacked against the moving averages, Solana stands on much firmer ground than Bitcoin or Ethereum. At $23.39, SOL presently trades above its 50 and 200 DMAs. It also appears that thanks to bullish action throughout the first half of July, SOL’s 50 DMA will rise above its 200 DMA.

Still, investors should approach Solana with the same level of caution as other cryptos. For example, in Q1 of this year, volume trends were relatively heightened. In the current quarter, the volume has significantly faded. Because the market is still digesting the implications of both regulatory pressure and monetary policy constraints, prospective investors should exercise caution.

Hedera (HBAR-USD)

One of the more popular but speculative cryptos, Hedera (HBAR-USD) claims to be the most used, sustainable, enterprise-grade public network for the decentralized economy that allows individuals and businesses to create powerful decentralized applications (DApps), per Coinmarketcap. Interestingly, Hedera represents a more efficient system that eliminates some of the limitations of older blockchain platforms like slow performance and instability.

Currently, Hedera ranks number 32 among all cryptos based on market cap. However, despite its pertinence, HBAR took some body blows. In the trailing 24 hours, the token suffered a loss of more than 4% of market value. During the trailing week, it dipped almost 3%.

Because of the fundamental headwinds involved, it’s impossible to provide a confident bullish assessment of Hedera. However, since bottoming in mid-June, HBAR has been printing a series of higher lows. What’s more, at the time of writing, the token trades above its 50 DMA, which can’t be said about all cryptos. Then again, volume trends are down from Q1. As well, HBAR’s 200 DMA imposes an upside ceiling. Therefore, it’s best left to speculators.

Filecoin (FIL-USD)

A lesser-known name among cryptos, Filecoin (FIL-USD) presently occupies the caboose of the top 30 digital assets by market cap. Still, the pressures impacting the blockchain ecosystem have been rough on FIL, with the coin slipping over 3% in the trailing 24 hours. Over the past one-week period, it lost almost 7% of its market value.

However, one factor that stands out for Filecoin against myriad other cryptos is its practical utility. Specializing in decentralized cloud storage solutions, the Filecoin network represents its own economy. Those who want to offer extra storage can do so. In return, they receive the underlying blockchain token as a reward. Cloud users enjoy supporting a grassroots movement rather than a big tech albatross.

Interestingly, Filecoin trades just above its 50 DMA, which sits at $4.18. Further, this moving average has represented a support line. So, it’s critical that FIL holds above it. Still, FIL’s 200 DMA stands above the muck at $5.12. As well, volume trends have declined significantly in the current quarter.

Among the top virtual currencies, Filecoin is promising because of its practical application. Nevertheless, investors will want to exercise caution.

On the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT, and XRP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.