Analyst Warns: Risks Have Increased for These 3 Cryptocurrencies, Stay Away!

Three well-known and highly capitalized cryptocurrencies have come under increasing selling pressure this week. Crypto analyst Vinicius Barbosa says these selling activities could create volatility as market participants speculate on the effects of increased supply pressure on the price, increasing risks. In this context, the analyst states that the following three cryptocurrencies currently pose a higher risk than many projects.

XRP is in the midst of its biggest monthly sell-off ever!

In first place is Ripple’s XRP native token, with a market cap of $27.10 billion. Ripple, the company behind its development and the largest owner of XRP, has witnessed significant sales every month since its launch. However, with 400 million XRP spent from the treasury account, June’s activity was the largest sale reported to date. This equates to $200 million at an average monthly price of around $0.50 per token.

Even though Ripple’s account has already spent the tokens, they will gradually become a supply pressure on crypto exchanges. As the year-to-date chart shows, this could impact the XRP price. There was positive price movement on only five of the 14 sales days: February 5, 11, April 14, May 13 and May 20. The other nine days all consisted of local collapses. This proves the value of monitoring the company’s activities. Moreover, XRP’s year-to-date monthly performance has been negative in three of the first five months of 2024.

XRP/USD daily price chart. Source: TradingView

Mysterious AVAX whale activity creates chaos for cryptocurrency

In second place comes Avalanche (AVAX) with a market value of $10.30 billion. A mysterious whale started selling AVAX on multiple exchanges such as Binance and Coinbase. Subsequently, AVAX lost approximately 5% of its value in the last 24 hours. This situation was first reported by ZachXBT. The sale of approximately $55 million put traders on red alert. Thus, many people engaged in panic selling in response to fear, uncertainty, and doubt (FUD).

While Avalanche traded at $26.14 at press time, it has lost 32.18% year-to-date. Additionally, the token has suffered even greater losses from this year’s high of $60.

Avalanche (AVAX) year-to-date price chart.

LINK is under ongoing inflation and always selling pressure

Finally, Chainlink (LINK) became the third cryptocurrency to refrain from trading this week as the project’s vesting agreements put 21 million LINK into circulation for a massive sale worth approximately $300 million on Friday. The team sent 18.75 million of the unlocked quantity to a Binance deposit address. Thus, the company demonstrated its intention to immediately sell approximately 88% of the inflated supply through reporting at a market price of $265 million.

This represents 3.5% of Chainlink’s $8.4 billion market cap. Therefore, it can create strong supply pressure on the stock market. LINK is currently trading at $13.79 with a monthly loss of 14.26%.

Chainlink (LINK) one month price chart.

The opinions and assumptions expressed in the article are those of the analyst and are not necessarily investment advice. cryptokoin.comWe strongly recommend that you do your own research before investing.