Given the volatile nature of the cryptocurrency market and the indications of a potential short-term correction, investors may be considering hedging their positions. Even if it’s impossible to forecast the future, specific cryptocurrencies seem more susceptible to a decline than others. Here are three alternative coins that you may want to sell in the event of a correction or withdraw from them temporarily:
1. Coins Driven by Hype and Unproven Technology:
Numerous efforts in the cryptocurrency industry are based more on conjecture than actual utility. These currencies frequently rely on aggressive marketing and social media excitement to artificially raise their values. Investors typically become more risk-averse during a slump and run from untested ideas.
Solana (SOL)
At $143, Solana is still one of the most popular cryptocurrencies among users. Solana has dropped 17% this month and 1.93% over the past 24 hours. Weekly flows for Solana are still in the green, though. The asset is one of the cryptocurrencies to sell based on its decline over the past 48 hours. The drop in trade volumes is another element working against SOL performance in the short run. Weaker on-chain factors are shown by the 12.26% decrease in daily trade volumes. On the last day, Solana meme coins also experienced a decline in momentum.
2. Cryptocurrencies with Diminished Network Activity
A thriving network with steady user activity indicates a strong cryptocurrency. Developer contributions to the project’s codebase, transaction volume, and the number of active addresses are a few examples of metrics that may be used to gauge this. A dip in these measures indicates reduced customer interest, which may make price reductions during a correction worse.
Polkadot (DOT)
Polkadot trades at $6.92, down 2% over the previous day as emotions deteriorate. Along with recent outflows, DOT joins cryptocurrencies that have lost weekly gains. Some traders have identified it as an altcoin to sell this week, despite the community’s optimism that it would rise from its recent low. The asset saw monthly outflows of 22%.
3. Excessive Altcoin Prices
Even well-known cryptocurrencies can experience overbought conditions as a result of market euphoria. This may lead to a scenario in which a little decline sets off a chain reaction, with investors selling their assets in a panic to cut losses.
Dogecoin (DOGE)
The most popular meme coin, Dogecoin, gained upward momentum, with some traders predicting a surge above $1. But when other meme coins lose traction, short-term decline jeopardizes the asset’s shape. The daily trading volumes of DOGE have decreased this week. Memecoin’s market capitalization is down 2.2% to $50.7 billion.
Despite declining, many cryptocurrencies have surged this year as bulls have projected strong feelings.
