The altcoin market tends to rebound after a few tough weeks. However, the situation is not developing in the same direction for all cryptocurrencies. In this article, let’s take a look at some of the projects investors should stay away from in the short term, from financial expert Julia Magas’ list.
It might make sense to stay away from these 3 altcoins in the short term
Filecoin (FIL)
The high-risk Filecoin (FIL) is facing its challenges leading to potential selloffs. Indeed, its poor performance has continued over the past few months. Investors saw little improvement as the downward price trend continued. Notably, in just two weeks, Filecoin has dropped over 30%.
Technical analysis reveals that there has been no bullish momentum since September 2021. Filecoin is showing a steady bearish trend, confirmed by the bearish moving averages on the 4-hour chart. In June, the market structure clearly shows a series of lower highs and lower lows. After the recent recovery, it has seen some correction today. In particular, the fact that it is one of the cryptocurrencies declared as securities under SEC lawsuits poses more risk.
Axie Infinity (AXS)
Axie Infinity (AXS) has garnered significant attention in the crypto market throughout 2021. But the latest regulatory review has raised concerns among investors. The price of AXS has dropped more than 36% in just two weeks, hitting two-year lows. This indicates a decline in investor confidence. The SEC’s classification of AXS as a potential security caused its value to plummet.
Pending US court orders, possible escalating regulations, and delisting from US platforms are building risks to AXS’ demand and liquidity. Therefore, AXS investors should exercise caution as regulatory changes unfold. AXS is currently moving sideways to the $5.5 region after the last rally.
BNB Coin (BNB)
Binance’s cryptocurrency, BNB, has faced a sharp decline following the SEC lawsuit. The lawsuit alleges that Binance was involved in an illegal operation in the US. This decline reflects continued pressure from US regulators on crypto companies.
Specifically, BNB dropped 9.82% on June 12 to a two-month low of $275.29. The drop comes after the SEC’s lawsuit, which is the second complaint filed by the FOMC against Binance after the first.
As reported by CoinGecko, the value of BNB has dropped by about 12% in the past week. Prior to that, it had lost over 18% since April. The downward trend is compounded by increasing pressure from authorities in other countries. cryptocoin.comAs you follow, Binance has ceased operations in the Netherlands and Cyprus and is reportedly under investigation for “aggravated money laundering”.
What’s next for BNB?
Considering the challenges Binance is facing, the downward pressures for BNB coin continue. This makes BNB the cryptocurrency that completes our list of tokens to sell.
