5 Crypto To Sell in a Weak Q3 Market

So far in August, the crypto market has shown a notable bounce from the prevailing correction trend. However, the momentum behind this recovery remains weak, with Bitcoin struggling to stay above the $60,000 level. As the consolidation trend persists across most altcoins and the risk of a market recession looms, risk-averse investors may consider this crypto to sell and preserve capital.

Crypto To Sell as Historical Data Points to a Sluggish Q3

Data from Coinglass Analytics shows Bitcoin’s historical performance based on every quarter since 2013. The chart below reveals that the 3rd quarter has been an underperforming period for BTC, showing an average growth of +5.33%. The lack of bullish momentum from the leading cryptocurrency could also hamper the growth potential of the altcoins market. 

However, the Q1 and Q2 projects had a notable recovery phase with an average return of +56.47% and +26.89%, respectively. Moreover, the Q4 data surpasses others with +88.84% Average growth, indicating a suitable period to consider which crypto to buy.

Crypto to Sell- Dogecoin (DOGE)

Dogecoin, the dog-themed meme cryptocurrency, has displayed a consolidation trend for the last two weeks, wavering around $0.1. However, the lateral move could flip to a bearish outlook as Solana-based crypto funds experienced record outflows of $39 Million due to a sharp decline in Meme coins volume, according to Coinshare data.

This report marks the declining investor interest in these ‘joke coins,’ indicating the potential for further correction.

Moreover, the On-chain data from Santiment shows a declining trend in DOGE’s Supply Distribution from addresses holding between 100 million and 1 billion DOGE. This metric recently plunged to 127 Coins, showing that large holders (whales) are selling or redistributing their DOGE holdings, often coinciding with a potential market correction. By the press time, the DOGE price traded at $0.1.

Thus, the Dogecoin price prediction hints at a potential fall of 20% to hit $0.8 support. 

Avalanche (AVAX)

Avalanche (AVAX), a high-performance blockchain platform, will witness a substantial token unlock on August 20th. The token unlock data shows about 10.24 million, distributed in +9.54 Million in Cliff unlock and 700k in linear unlocks. By the press time, the AVAX price traded at $20.5.

This Cliff unlock was distributed among key stakeholders: 4.5 million AVAX tokens (1.14% of the circulating supply) were allocated to the team, worth around $93.11 million. Strategic partners received 2.25 million AVAX tokens (0.57% of circulating supply), valued at $46.55 million, and the foundation received 1.67 million AVAX tokens (0.42% of circulating supply), worth $34.49 million.

Such token unlock could increase the circulating supply and exert downward pressure on the asset. The Avalanche price prediction hints at a 15% downside potential to hit $17.29, followed by $15.65.

Uniswap (UNI)

Amid the current market consolidation, the Uniswap price reverted from $6.6 resistance to $6.19, registering a 7% drop. The bearish turnaround hints at an intact overhead supply and the continuation of a falling wedge pattern.

The chart pattern has led to a steady downtrend in UNI price since March 2024. Moreover, recent data reveals a declining trend in Uniswap’s 24-hour active addresses, with the latest count dropping to 800. A decrease in active addresses often correlates with a reduction in transaction volume. Fewer participants in the network may suggest a lower demand for the cryptocurrency, potentially leading to reduced liquidity.

Thus, a potential crypto to sell Uniswap may plunge 20% down to seek support at $4.8.

Artificial Superintelligence Alliance (FET)

The Artificial Superintelligence Alliance (ASI) is a collaboration between three major decentralized AI projects: Fetch.ai, SingularityNET, and Ocean Protocol. Currently marked with FET, the coin price trades at $0.81, with a market cap of $2.06 Billion. 

Moreover, the supply of FET on exchanges saw a significant spike in August, reaching 10.75 million. This metric suggests that more FET tokens are being moved to exchanges, which could indicate that holders are preparing to sell or trade their tokens.

Thus, FET emerges as a potential crypto to sell with a downside risk of 35% to test $0.52 support.

Optimism (OP)

Optimism, the Layer 2 scaling solution built on Ethereum, shows a market cap of $1.6 Billion, with OP token trading at $1.37.

On August 31, 2024, Optimism (OP) is set to undergo a significant cliff unlock event, releasing a total of 31.34 million OP tokens. This token unlock represents 2.64% of its circulating supply, valued at approximately $42 million.

Further distribution from Token Unlock shows core contributors will receive 16.54 million OP tokens worth $22.17 million, and investors will receive 14.80 million OP tokens valued at $19.83 million.

With the potential increase in circulating supply, the OP price could extend the correction trend to $0.88, registering a loss of 33%.

Conclusion

Given the historical performance of the cryptocurrency market in Q3, the crypto to sell list highlights DOGE, AVAX, OP, UNI, and FET amid current market uncertainty.

✓ Share:

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.