Investors can choose high-flying crypto projects for their outsized return potential. However, certain meme tokens now present unique risks, given the run they’ve had in recent weeks.
Many such tokens lack utility. Yet while these projects may enjoy robust communities of ardent investors holding on for dear life, selling pressure can turn them into sellers in short order.
For those looking for top cryptos to sell at or near the peak, these are three I’d put in this category. Of course, further upside is always possible. But given the risks these tokens provide, it may be best to steer clear right now.
Dogwifhat (WIF-USD)
Dogwifhat (WIF-USD) has experienced a remarkable surge over the past month. The boost is sparking speculation about this token reaching $5 this month. In just a week, WIF saw a 184% surge. I
Also, it surpassed its $1.4 billion market cap, reaching a spot in the top 100 cryptocurrencies. WIF is a Solana-based project, and the meme token has been receiving optimistic support benefiting from other of Solana’s (SOL-USD) momentum.
Despite its rapid ascent, sustainability is questioned as WIF relies heavily on speculation rather than fundamentals. Analysts highlight concerning technical indicators like RSI nearing 90 and unsustainable price parabolas. Despite a recent 50% surge, investors anticipate further gains this month, influenced by market conditions.
Over the last 24 hours, Dogwifhat’s price dipped by 4.55% to $3.02, contrary to its 24.0% uptrend over the past week from $2.29. Therefore, this may be one to sell fast.
Pepe (PEPE-USD)
Pepe (PEPE-USD), inspired by the famous Pepe the Frog meme, strives to reignite the glory of meme coins. It pioneers a more straightforward approach in the meme coin space, drawing attention and value from its enthusiastic community. Large cryptocurrency holders favor Pepe, evidenced by significant purchases, signaling high demand for the token.
Meme coins surged in 2023, offering quick gains for speculators. Pepe notably soared ten-fold, turning $1,000 into $16,300. However, interest has waned amid challenges like allegations of insider trading. So, trading volumes dropped from billions to a fraction, with Pepe facing declining enthusiasm and confidence.
Despite Pepe Coin’s rapid growth, prospects of it hitting $1 in 2024 are slim. Technical analysis suggests its price may not breach this level. Factors like market sentiment and project advancements will steer PEPE’s trajectory. Achieving a $1 valuation requires substantial capital, which is unlikely given the current supply. Traders and investors should approach PEPE cautiously, considering its potential and challenges.
Shiba Inu (SHIB-USD)
A meme coin following in the footsteps of other dog-inspired cryptos, Shiba Inu (SHIB-USD) has surged more than 200% since the beginning of the year. These gains most notably surpassed most of the top cryptos, leading investors to pile into this more speculative asset. The “price go up” momentum behind Shiba Inu remains strong.
With that in mind, investors may note this token’s performance during down markets. And, with no significant developments beyond Elon Musk’s Twitter stunt, there’s little to like about this project’s long-term viability. Considering sustainable real-world utility, investors probably shouldn’t consider this token moving forward.
A decline in speculative tokens led to a significant market selloff on March 15. The movement of one trillion SHIB tokens caught attention as its price fell below $0.00003, following a 200% surge in the past month.
For those looking to avoid near-term losses, this is simply a token I’d view as one to toss into the sell bin.
On the date of publication, Chris MacDonald did not have (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.
