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3 Cryptocurrencies to Steer Clear of Trading in the Coming Week

3 cryptocurrencies to avoid trading next week

The cryptocurrency market is inherently volatile and uncertain, and certain events can exacerbate these risks for specific digital assets. Implementing sound risk management practices is crucial to maximizing trading results, especially during periods of extreme uncertainty.

Looking ahead, Finbold has identified three cryptocurrencies that traders may want to avoid next week due to heightened risks on the horizon.

Token unlocks, in particular, have the potential to significantly impact cryptocurrency prices by increasing the circulating supply. As such, three digital assets stand out as ones to avoid trading next week due to upcoming token unlocks.

Over the next seven days, a total of $338.42 million worth of tokens will be unlocked across various crypto projects. Notably, Aptos (APT), The Sandbox (SAND), and CyberConnect (CYBER) will account for 98.9% of this unlocking, totalling $334.74 million, as reported by Token Unlocks App.

The largest token unlock is expected for Aptos (APT) on February 11, with 24.84 million APT, valued at over $221.59 million, set to be released. This increase in circulating supply by 7.3% could have a significant impact on the token’s price.

Meanwhile, both The Sandbox and CyberConnect are scheduled to unlock a substantial number of tokens next week, further increasing their circulating supplies by 9.2% and 15.9% respectively. The potential for investors and contributors to offload these unlocked tokens adds to the overall uncertainty surrounding these cryptocurrencies.

It is important for traders to recognize the potential consequences of these token unlocks and exercise caution. While there is a possibility of short-term price spikes, the overall impact on prices and the dilution of holding values should not be underestimated.

In light of these upcoming events, it may be advisable for investors to refrain from trading Aptos (APT), The Sandbox (SAND), and CyberConnect (CYBER) next week and await further developments. It is crucial to stay informed and exercise prudence in navigating the cryptocurrency market during times of heightened uncertainty.

As a final note, it’s important to remember that the information provided here does not constitute investment advice, and trading in cryptocurrencies carries inherent speculative risks. Investors should carefully consider these risks before making any decisions.