The Bitcoin (BTC-USD) rally appears to be over. That’s not good news for these three speculative cryptos to avoid. Barron’s May 1 said it all: “Bitcoin Plunges. Here’s Why and How Far Prices Could Fall.”
“Technical downside targets now look to be $55,700 (61.8% Fibonacci retracement of the rise since October) and the $51,000 to $52,000 area (late January consolidation area),” Barron’s reported comments from Alex Kuptsikevich, an analyst at broker FxPro.
Bitcoin is often considered the gold standard when it comes to cryptocurrencies. There is no question that, outside of BTC and Ethereum (ETH-USD), there are a lot of imposters in the crypto arena.
Peter Brandt, the founder of Factor LLC, predicted Bitcoin’s 2018 big correction when it lost 80% of its value. Brandt believes Bitcoin could now . If Bitcoin doesn’t stand a chance, how can any of these three imposters hope to deliver for its supporters? Sell these speculative cryptos to avoid now.
Toncoin (TON)
It’s been a long time since I last wrote about a top 10 crypto other than Bitcoin. When I did, as far as I know, Toncoin (TON-USD) wasn’t anywhere close to the top 10. But, according to Coinmarketcap.com, Toncoin is now the ninth-largest cryptocurrency with a market capitalization of . I couldn’t resist including it on my list of speculative cryptos to avoid.
Telegram, famous for its encrypted data, is one of the world’s biggest messaging platforms with more than . It recently embraced crypto technology and now accepts toncoins for payment on its ad platform, ditching the euro in the process.
“Telegram, too, stands to benefit from the program. Though Telegram has never before been profitable, it could now generate revenue from hosting tailored ads. With 700 million monthly active users and 1 trillion channel views per month it has a large base of eyeballs to draw from,” Coindesk contributor Danny Nelson in early April.
While utility is essential for crypto appreciation, I don’t see how Toncoin’s market cap is $19 billion. Avoid it until this partnership with Telegram proves to be a winner.
Stacks (STX)
Stacks (STX-USD) is the 35th largest crypto with a $3.2 billion market cap. Like most cryptos, it’s up large over the past year, gaining 179% over the past 52 weeks. On the downside, it’s lost 17% in the past seven days, more than six times Bitcoin’s losses.
Motley Fool contributor RJ Fulton says he’s made 300% on Stacks and . “Since my first investment in Stacks in May 2023, when it was worth about $0.60, it has climbed to an all-time high of $3.80. With some additional investments along the way, my Stacks position is up a commendable 307% as of March 30,” Fulton wrote.
According to Fulton, Stacks has smart contract functionality, which puts it in the decentralized finance arena. I like the idea of that. Further, the author suggests that the crypto’s new Nakamoto release is a paradigm shift that could release more than $1 trillion in dormant Bitcoin capital. But if it sounds too good to be true, it probably is.
Dogwifhat (WIF)
Even further down Coinmarketcap.com’s list of the top cryptocurrencies is Dogwifhat (WIF-USD), which is in 39th place with a market cap of $2.9 billion.
It clearly has captured the attention of crypto investors interested in buying meme coins. In March, WIF became the meme coin by market cap. It remains in fourth spot behind Pepe (PEPE-USD), Shiba Inu (SHIB-USD) and Dogecoin (DOGE-COIN).
Crypto news source Unchained.com had some things to say about the meme coin in March. “The project’s founders remain anonymous, but the most popular meme coin, Dogecoin (DOGE), is said to be among the things that inspired them,” Unchained . “However, while DOGE has some use cases, dogwifhat derives its perceived value entirely from speculation.”
More importantly, Unchained says WIF lacks an underlying utility. That should make it a pass for most rational investors.
On Low-Capitalization and Low-Volume Cryptocurrencies: 香港六合彩玄机 does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that 香港六合彩玄机.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the 香港六合彩玄机.com Publishing Guidelines.
