3 Cryptocurrencies to Avoid Trading This Week Due to Upcoming Sell-offs

Sentiment in the cryptocurrency market turned from bearish to bullish after Fed Chairman Jerome Powell’s dovish speech. Buying pressure increased

Cryptocurrency market sentiment shifted from bearish to bullish following Fed Chairman Jerome Powell's dovish speech, which led to increased buying pressure for most tokens. However, crypto analyst Vinicius Barbosa has highlighted three tokens that could face売出 pressure in the upcoming week.

First Warning: XRP's Upcoming $120 Million Sell-Off

The most significant sell-off on the horizon is from Ripple, pertaining to the XRP Ledger (XRP). On average, the company moves over 200 million XRP from its treasury account each month, which is usually sold by the firm. To date this year, Ripple has moved 1.826 billion XRP in possible sales. At the time of writing, there is still 124 million XRP, valued at around $200 million, sitting in 'Ripple (1)'. According to on-chain data, this is what the cryptocurrency had to say.

Second Warning: Optimism (OP) Sell-Off on August 31

Secondly, due to an incoming unlocking activity on August 31, Optimism (OP) is another cryptocurrency to watch out for when trading this week. For “Core Participants” and “Investors”, Optimism will unlock 31.34 million OP, valued at $50.46 million. According to the latest data from TokenUnlocksApp, this activity will increase Optimism's circulating supply by 2.6%. Out of the $74.81 million in token unlocks expected over the next seven days, this activity alone will account for 67%.

Third Warning: Yield Guild Games (YGG) Sell-Off

To round off the unlocks for the week, Yield Guild Games (YGG) will unlock 14.08 million YGGs, which are expected to be partially sold on the market by the Community, Founders, Investors and Treasury. Notably, the tokens being released by YGG are valued at $6.82 million at current prices. However, this only represents 3.7% of the token's circulating supply. As a result, despite being low compared to other cryptocurrency sales, this event could still impact the Web3 game project from August 27.

Before committing capital to any cryptocurrency project, investors should study and understand its tokenomics to avoid being caught off-guard by a sell-off. However, the demand for the token may be high enough to offset the sell-off. In that case, an unlock or impending sell-off may not affect the price.

The analyst's views and projections in this article are not intended to be used as investment advice. As Kriptokoin.com, we strongly advise you to conduct your own research before making any investments.

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