While the cryptocurrency market offers numerous digital assets that could be profitable investments for long-term holding, it may be wise to temporarily abstain from trading specific cryptocurrencies. Based on past performance and historical data, there are some altcoins that traders might want to steer clear of in April.
One reason for this is the poor technology and adoption scores of some altcoins, which indicate a lack of interest and development in the platform. Another factor is weak market performance, which can lead to declining trading volumes and decreased prices. Additionally, the lack of news and updates surrounding certain altcoins can be a red flag for traders.
However, it’s important to note that past performance is not a guarantee of future results, and traders should always do their own research before making investment decisions. Overall, staying informed and cautious is key to navigating the ever-changing cryptocurrency market.
Analysts have identified three crypto assets that traders may want to ditch in April based on factors such as ratings, historical performance, and recent events or lack thereof. These indicators have led to the conclusion that these cryptocurrencies may not be the best options for trading at the moment.
Kusama (KSM)
Kusama is a blockchain prototype of the Polkadot ecosystem, built on an almost identical codebase. It aims to offer an experimental and developmental environment for new features that will eventually be deployed on Polkadot. Despite its significant objective, Kusama’s technology development and adoption have been given a ‘very weak’ (E-) rating. Additionally, there has been a lack of notable updates in the past month, potentially indicating sluggish progress.
In addition, its market performance has been scored as ‘weak’ (D+), as its trading volume has declined, and its price has dropped by 0.51% in a day, 9.91% in a week, and 13.4% on its monthly chart, currently sitting at $33.14.
ABBC (ABBC)
ABBC is another coin that scores poorly in terms of both technology adoption (E-) and market performance. ABBC is a blockchain platform that integrates facial recognition to enable secure transactions and offers crypto services such as Aladdin Wallet and Aladdin Pro.
Despite its promises and the launch of a new staking portal on Aladdin Exchange, CoinMarketCap data shows that there are only 62 holders of the ABBC coin. Furthermore, while it gained 2.65% during the week, its price declined 2.27% in the last 24 hours and 6.22% over the past 30 days, with its current trading price at $0.07.
Mina Protocol (MINA)
The Mina Protocol (MINA), which is creating a privacy-focused gateway and aiming to be the first ZK blockchain, has performed better in the market compared to the two previously mentioned cryptocurrencies due to its decent market momentum. However, its technology and adoption grade is only slightly better, receiving a score of E+, indicating a ‘very weak’ rating despite the buzz around ZK tech. MINA was priced at $0.78, experiencing a daily drop of 2.71%, with a decline of 10.47% over the past week and 17.63% over the last month.
Conclusion
However, it is essential to note that the cryptocurrency market can be highly volatile and unpredictable, often experiencing drastic changes in market capitalization within hours. Therefore, even the cryptocurrencies mentioned above that may not be ideal for trading in April could potentially show progress in the future.
That being said, it is crucial to exercise patience and carefully monitor market movements, developments, and sentiment while conducting due diligence on each digital asset before making any substantial investments. It is important to keep in mind that investing is speculative, and there is always a risk of capital loss. Hence, the content on this article should not be taken as investment advice.
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