The cryptocurrency market has been turbulent lately, with widespread uncertainty and increased volatility among digital assets. Investors are eagerly waiting for a major catalyst which could potentially trigger a price momentum in the coming days.
Finbold has identified five cryptocurrencies to avoid in the upcoming week due to their high volatility and weak fundamentals.
Starting with Helium (HNT), its native token reached an all-time high in late 2022, but has since then experienced increased volatility and lost its gains. Despite the announcement of the token’s listing on Coinbase and adoption on Solana (SOL) network, which strengthened the Helium ecosystem, there are still doubts about the network’s management, stemming from an initial investigation alleging Helium insiders were accumulating wealth at the expense of the community. At the time of writing, HNT was trading at $1.54, declining by 8% in the last seven days.
Floki (FLOKI) has seen a significant drop in its value over the past 30 days, with the meme cryptocurrency losing more than 20%. Despite recent partnerships, including one with BitGo, most Floki investors are currently incurring losses due to the bearish market conditions. This raises questions about the utility of Floki and other meme coins. As of now, FLOKI is trading at $0.000016, showing a 4% decrease in the last week.
Kadena (KDA) is a proof-of-work blockchain which combines Bitcoin’s PoW consensus mechanism to create a scalable and energy-efficient Bitcoin (BTC) variant. KDA experienced a surge in activity in late August due to Ledger’s support for the token, allowing users to move their funds from exchanges. However, KDA is still facing a lot of uncertainty due to parameters such as market sentiment. Currently, KDA is trading at $0.45, falling by 11% in the last seven days.
Enjin Coin (ENJ) has secured its place as a key player in the NFTs revolution, particularly in the gaming industry. Although the Enjin team announced an update to transition the project from Efinity to Matrixchain, this development has not caused a major price movement. Like other metaverse tokens, ENJ is a risky asset and most metaverse tokens have seen their market capitalization dropping by 90% between November 2021 and September 2023. ENJ is currently trading at $0.23, recording a 5% drop in the last week.
Finally, GMX (GMX) has been seeing a continuous decrease in its value and appears to lack any fundamentals which could trigger a price increase in the next week. In the current bearish market, investors should be cautious when investing in GMX, as it could have a negative impact on the token’s price. GMX is trading at $33.07, decreasing by 10% in the last seven days.
It is important to keep in mind that the crypto market is highly unpredictable and circumstances can change quickly. Therefore, investors should be aware of the risks involved in investing in cryptocurrencies.