DOGE

Crypto Carnage Ahead? 3 Tokens to Dump Before the Bloodbath

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The crypto sector is one that’s been pumping over the past year. And while many top tokens have taken a bit of a breather after key catalysts such as the approval of spot Bitcoin (BTC-USD) ETFs and its corresponding halving, recent selling pressure may have some investors considering which are the top tokens to dump and perhaps add to in this current climate.

I’ve been generally bearish on meme tokens for some time, and the three on this list may not surprise most. Ultimately, over the long term, the crypto projects likely to generate meaningful and sustainable returns are those that provide real utility to end users. Indeed, these projects have announced certain catalysts that may warrant some attention, but ultimately, it’s not the kind of utility likely to lead to much, at least in my view.

I think investors looking to put capital to work in this space need to be very selective. With that said, here are three cryptos to sell right now.

Pepe (PEPE-USD)

Crypto exchange screen focused on meme coins category, as BONK, SHIB, FLOKI, PEPE, MEME, ELON, SNEK, COQ, WIF, CORGIAI or BabyDoge. meme coins

Source: Maurice NORBERT / Shutterstock.com

Inspired by the Pepe the Frog meme, Pepe (PEPE-USD) has seen impressive surges over the past year, and is currently making another run toward what seems to be new highs. That makes the token a highly speculative momentum option for traders looking to bet on a new wave of interest in the crypto space.

It’s a token that’s difficult to short into this momentum. But I do think long-term investors looking to preserve their capital would do better rotating out of a speculative asset like this and into a more stable and respected project.

A lack of utility and high volatility have plagued Pepe in the past, with steep rises met with corresponding selloffs. I’m not saying such a selloff is in the cards anytime soon. But it is one I do think will see some sort of selloff moving forward. Whether that’s from another doubling, tripling or higher from here remains to be seen. Like the other tokens on this list, investors may only want to invest capital they can afford to lose into such a project, at least in my view.

Dogecoin (DOGE-USD)

Dogecoin Cryptocurrency

Source: Orpheus FX / Shutterstock.com

Launched as a fun altcoin to Bitcoin in 2013, Dogecoin (DOGE-USD) now sits in 8th place as one of the most valuable cryptos in the world. Although it has a $20 billion market cap, it still lacks utility among other crypto coins.

Strong community support is helpful, but the excitement may fade. If Dogecoin is used as a stable form of payment, it could bring a positive angle to the token. However, its long-term survival still needs to be determined. Unlike other cryptos that offer real-world utility, Dogecoin still lacks that aspect.

The recent bearish movement caused a drop in its OI-weighted funding rate, putting Dogecoin investors in a cautious state. Whales adding to liquidations fueled panic, seen in significant DOGE transfers to exchanges, like 245 million tokens worth nearly $50 million. 

Analysts debate community influence on token stability. Smaller projects with active communities may counter downturns, but DOGE’s high volatility suggests disappointment for investors.

Shiba Inu (SHIB-USD)

A concept token for the Shiba Inu or SHIB crypto with lights sparkling in the background.

Source: Shutterstock

In 2020, Shiba Inu (SHIB-USD) became a rival and peer to Dogecoin. Shiba Inu was built in UniSwap decentralized exchange (DEX). However, since the crypto market has seen a long winter, Shiba Inu went down with others due to the collapse of the FTX exchange. That has caused billions in losses and disappointment for investors.

As of the time of writing, Shiba Inu has been breaking downward resistance despite the seller’s resistance. That has hinted at low forecasts from analysts. Currently, SHIB trades at $0.000024, and a breakthrough of $0.000033 could save the token. Analysts also expect a target of $0.000039 resistance. Conversely, a drop below $0.000024 suggests profit-taking, possibly hitting $0.000020.

Buying SHIB remains debatable, as it’s building its ecosystem with DEX, P2E games and a metaverse. To be marked safe, investors are encouraged to sell if they have a low-risk tolerance.

On the date of publication, Chris MacDonald did not hold (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 InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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