The cryptocurrency market continues to be turbulent with widespread uncertainty as most altcoin projects exhibit increased volatility. Indeed, the market is eagerly awaiting a major catalyst that could potentially ignite a price momentum in the coming days. Meanwhile, analyst Paul L. has identified five altcoin projects to stay away from in the coming week, amid the ongoing bearish trend in the market. But before we start writing, it is worth noting that this is only a guess. It is also possible for the altcoins that the analyst said “stay away” to show an extraordinary performance. Because the crypto market is often unpredictable. Here are the details…
Helium (HNT) is first on the analyst’s list
HNT, the native token of the Helium network, has exhibited increased volatility over the past month. It erased the gains that had the token reaching an all-time high in late 2022. Originally seen as a promising startup in the cryptocurrency industry, Helium aimed to create a Blockchain-based wireless network for IoT devices such as tracking chips and sensors. In particular, the network has initiated significant developments that could affect the value of HNT. August started on a strong note for the token with news of its listing on Coinbase and adoption on the Solana (SOL) network. Both contributed to strengthening the Helium ecosystem.
Stay Away from These 5 Altcoins Next Week!However, despite these positive developments, HNT has experienced increased volatility in recent weeks and has struggled to maintain its gains. There also remain concerns about the governance of the network, stemming from the initial investigation that alleged Helium insiders were amassing wealth at the expense of the community. HNT was trading at $1.54, a correction of over 8% in the last seven days.
Floki (FLOKI) is also on the altcoin list
Foki (FLOKI) has experienced a significant decline amid ongoing bear market conditions, losing more than 20% in value over the past 30 days. Despite recent partnerships, including BitGo, most Floki investors are currently losing money as the meme coin struggles with a market downturn. This fix adds to the questions raised against Floki and other meme coins due to their perceived lack of utility. Moreover, Floki faces an uncertain future affected by a variety of factors, including overall market sentiment. Floki is currently valued at $0.000016, reflecting weekly losses of around 4%.
Kadena (KDA) cannot maintain its gains
Kadena (KDA), a PoW Blockchain that blends Bitcoin’s PoW consensus mechanism to create a scalable Bitcoin (BTC) variant, has struggled to maintain its recent gains. Towards the end of August, KDA experienced a rally due to increased purchasing activity triggered by the news that Ledger supported the token, allowing users to move their coins from exchanges. However, questions have arisen regarding Kadena’s relatively slower growth compared to other crypto projects such as Ethereum (ETH). Specifically, the network focuses on corporate transactions and banking, leveraging the energy-efficient PoW model. Despite positive developments, GDA continues its fluctuating course.
Enjin Coin (ENJ): There is a lack of volatility for the altcoin
Enjin Coin (ENJ) has solidified its position as a key player in the NFT revolution, particularly in the gaming industry, by enabling developers to seamlessly integrate Blockchain-based NFTs into their games and applications. Recent developments regarding Enjin Coin include the Enjin team announcing an update designed to facilitate the project’s transition from Efinity to the new Matrixchain. However, ENJ has not exhibited increased volatility in recent weeks. That is, this development did not lead to any significant price movement.
According to the analyst, ENJ, like other metaverse tokens, remains an asset that should be approached with caution given the overall decline of the sector. In fact, most metaverse tokens saw their market caps drop by nearly 90% between November 2021 and September 2023. In addition, ENJ; It faces concerns around issues like security, privacy, community governance, and lack of long-term HODLing incentives. Currently, ENJ was trading at $0.23, down almost 5% for the week.
At the end of the list is GMX (GMX)
Finally, GMX (GMX) price has been falling steadily, erasing previous gains. GMX was designed as a cryptocurrency specifically designed for efficient value transfers within the Ethereum network. Currently, GMX lacks underlying fundamentals that could trigger a price rally next week. Considering the current market depression, current conditions may negatively affect the value of the token. Therefore, it would be wise to exercise caution when considering investing in GMX. Although the cryptocurrencies in question have exhibited high volatility, it is important to recognize that the crypto market is known for its rapid fluctuations and conditions can change quickly.
