Potential crypto pitfalls for investors are raising red flags this year. These coins could be clear losers amid Bitcoin (BTC-USD) potentially facing a historic decline after reaching an all-time high this year. This forms the basis of my article for these cryptos to sell.

The valuations of tech stocks in the Nasdaq may be more attractive for some investors’ appetites. So, many may exit the crypto market next month to avoid the potential fallout from the halving event. This could be a temporary rotation of capital until Bitcoin, too, becomes undervalued. Yet, this also sets up some treacherous conditions for these potential crypto pitfalls to plummet in value.

Bitcoin will continue to be a blue-chip option, but there are three cryptos to sell this month to divest from the riskiest coins on the market.

As always, a risky cryptocurrency is a coin with a low market cap, low circulating supply and an inflated coin price. These coins have weak tokenomics with no real use case, making it a poor investment.

So, let’s examine three cryptos for investors to consider selling in June 2024.

Dogecoin (DOGE)

Dogecoin (DOGE-USD) is a meme-inspired cryptocurrency. Despite its humorous origins, Dogecoin has been used for online tipping, charitable donations and as a means of payment by some businesses.

However, DOGE is not a good long-term investment, due to it being primarily a meme coin with an unlimited supply. This means that DOGE’s price is not supported by scarcity and relies on buyers to constantly buy new DOGE to maintain its value. Some say that this unlimited supply can work against the price per coin and lead to inflation and uncertainty.

In the short-term, things also look bleak for DOGE, according to on-chain metrics from Santiment, with Dogecoin experiencing a decrease in active addresses and volume. This suggests increased selling pressure amidst a broader crypto market downturn as Bitcoin tumbled this week.

DOGE may be powerful when things are good, but in a downturn, it’s one of those cryptos to sell.

Ripple (XRP)

Ripple (XRP-USD) is facing selling pressure, with reports indicating significant XRP sales from different entities. The company’s CTO, David Schwartz, explained that Ripple holds a large amount of XRP — 4.8 billion in its portfolio and 40.1 billion in escrow, gradually released monthly over 42 months — and selling them is the only viable option to finance operations and ensure market stability.

However, these continuous sales raise concerns about their long-term impact on XRP’s value and user perception.

Adding to the selling pressure, PeckShieldAlert reported that addresses associated with the bankrupt FTX exchange and Alameda allegedly transferred around $12 million worth of cryptocurrency, including 10 million wrapped XRP worth $5.2 million sent to Binance. 

We’ve probably only started to see the beginning of the selloff for XRP, and it might be headed towards the bottom, along with the rest of the crypto market.

Pepe Coin (PEPE)

Pepe Coin (PEPE-USD) is a deflationary meme coin launched on Ethereum as a tribute to the Pepe the Frog meme, aiming to rank among top meme cryptocurrencies like Dogecoin. 

PEPE is now approaching a major support zone near $0.000010 and the 50-day simple moving average. If it holds above this level, the price could consolidate before potentially rebounding back towards $0.0000132, $0.0000150 and the recent high of $0.0000172.

Its recent price surge and volatility appear to be driven primarily by speculative frenzy and fear of missing out rather than any fundamental factors, making it highly susceptible to rapid price swings and crashes once the hype fades. As a purely speculative asset with no utility, PEPE lacks the fundamental drivers that could sustain long-term value appreciation.

PEPE encapsulates the extreme greed and fear sometimes shown in the crypto market and is prone to manipulation by whales and self-interested pump and dump groups. It’s a crypto then that should be avoided or treated with the trepidation it deserves.

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