“Expert Advice: 3 Cryptocurrencies You Should Avoid Trading Next Week”


To achieve success in cryptocurrency trading, having a strong risk management system is crucial. This involves using different strategies to protect investments in the volatile and rapidly changing crypto market. One important strategy is to avoid overextending in cryptocurrency, as this can lead to large losses when sudden changes in trend occur.

A standout tool in the risk management arsenal is the Relative Strength Index (RSI). Traders often use this indicator to identify when a particular cryptocurrency is overbought, which could signal an impending downward trend. Conversely, oversold coins could indicate a sudden increase in price in a declining market.

On January 13, Finbold’s RSI heatmap identified three cryptocurrencies that should be avoided in the upcoming week: Ethereum Name Service (ENS), Sui Network (SUI), and ConstitutionDAO (PEOPLE). These coins are currently overbought and carry extra risk for traders.

ConstitutionDAO, which has been disbanded due to its unsuccessful grassroots, continues to be traded by speculators with short-term success. However, it is important for investors to note the lack of organic value in PEOPLE and avoid trading it. The RSI for PEOPLE is currently at 70.17 for the 24-hour period and 85.17 for the weekly period.

Similarly, ENS is currently overbought with RSI values of 77 and nearly 89 for the daily and weekly timeframes, respectively. Despite its importance, it would be best to avoid trading ENS in the interim. The token is currently trading at $22.99, down 8.8% in the past 24 hours.

Another coin to avoid trading in the next week is Sui Network (SUI), which is set to launch soon. SUI is also signaling an overbought condition, with RSI values of 75.48 for the weekly period and 84.35 for the daily period. This coin has gained attention from Web3 investors for its high scalability and asset-oriented model.

Despite the potential for price increases, overbought indicators can still result in poor future performance for cryptocurrencies. To minimize risk, it is important for investors to avoid trading in these overbought coins. Comprehensive research and understanding of potential impacts are crucial for successful trading.

Disclaimer: This site does not provide investment advice and trading in cryptocurrency is speculative. Investors should be aware that their capital is at risk when investing.

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