Recession-Proof Crypto: 4 Tokens to Sell
Is the crypto market making you sweat? Things are definitely more volatile right now, with growing fears that the US economy might be headed for a recession. While some cryptocurrencies might be resilient enough to ride out this turbulence, others could really struggle under the weight of increased selling and a generally fearful market mood. If you’re a trader looking to protect your hard-earned capital, we’ve pinpointed four crypto tokens you might want to consider selling to avoid potential long-term losses.
4 Crypto Tokens to Sell as Recession Risk Spikes
The crypto markets got a serious case of the jitters recently when the risk of the US economy sliding into recession this year jumped to a worrying 40%. Remember those trade disputes and tariff wars? Well, they’re still casting a long shadow, sparking concerns about economic stagnation that are pushing investors away from anything considered risky – and that includes crypto.
Adding to the unease, a Reuters poll revealed that many economists are bracing for an economic slowdown, thanks largely to those ongoing tariff uncertainties. The same poll highlighted that these constantly shifting economic policies are also making it tougher for the Federal Reserve to accurately track inflation, injecting even more uncertainty into the market mix.
As crypto traders brace themselves for potentially more swings in the market ahead of crucial US inflation data due this week and the upcoming FOMC meeting next week, let’s dive into four crypto tokens that might be wise to consider selling now to protect yourself from long-term losses.
Ethereum (ETH)
Ethereum’s price just took a tumble, dipping below $1,900 for the first time since November 2023. This drop alone makes it a prime candidate to consider selling. To make matters worse, during this downturn, a significant ICO whale made a hefty move, transferring 7,000 ETH, worth over $12 million, to the Kraken exchange – further increasing the pressure to sell. And it’s not just one whale – we’re seeing a trend, with multiple large holders reducing their ETH positions, selling off a massive 33,000 ETH in just the last three days.
And it’s not just retail traders feeling the pressure – institutions seem to be pulling back too. We’re seeing this reflected in spot ETH ETFs, which have recorded a significant $122 million in outflows over the last three days, according to SoSoValue. With institutional demand weakening, the outlook for ETH’s price looks increasingly bearish.
Solana (SOL)
If a US recession becomes reality, cryptocurrencies closely linked to the US, like Solana, are likely to experience some of the steepest declines. This makes Solana a strong contender for a crypto token to sell if you’re aiming to sidestep long-term losses. Currently trading around $124, Solana has already seen a significant 9% drop in just the past nine days.
Adding to the concerning picture, data from Lookonchain shows that whales are also joining the selling pressure on Solana. One particularly large address recently offloaded 108,688 SOL for $12.2 million. Interestingly, this whale sold at a loss of $7.48 million, which suggests a notable lack of confidence in Solana’s ability to bounce back.
Technically speaking, Solana’s price is also teetering on the edge of a potentially sharp downturn, with the formation of a bearish “death cross” pattern looming. If this crossover is confirmed, it would strengthen the already bearish Solana price prediction, increasing the likelihood of the price dropping below $100, possibly even down to the $73 level, which aligns with the 123.6% Fibonacci retracement.
Dogecoin (DOGE)
Dogecoin is also flashing bearish signals, having dropped by 16% in just seven days. Adding to the worry, DOGE open interest has taken a nosedive, plummeting from $8 billion to $3 billion in under three months. This significant decrease suggests that traders aren’t opening new positions, indicating a lack of confidence in DOGE’s potential for a price recovery.
Dogecoin has also broken through the lower boundary of its descending parallel channel, which is a sign that bearish momentum is gaining strength. Technical indicators like the RSI are showing oversold conditions, and the Awesome Oscillator bars are pointing to a surge in selling activity.
Adding another layer of concern, the sliding stock price of Elon Musk’s Tesla could also negatively impact Dogecoin’s price, potentially leading to further losses. With no clear positive catalysts on the horizon, DOGE looks like another crypto token you might want to consider selling in the current climate.
TRUMP (TRUMP)
The TRUMP meme coin is also facing a potentially rough ride if the US economy dips into recession. For traders aiming to minimize their risk, it stands out as another crypto token to consider selling.
The initial frenzy around meme coins seems to be fading, reducing the chances of a TRUMP price recovery. Even though the oversold RSI suggests sellers might be losing steam, the lack of robust buying interest could mean TRUMP simply stagnates at its current low price levels. The rising bearish momentum indicated by the AO histogram bars further points to potential price declines.
Final Thoughts on Top Crypto Tokens to Sell
If you’re looking to navigate the current market cautiously and avoid potential extended losses, Ethereum, Solana, Dogecoin, and TRUMP are definitely worth considering as crypto tokens to sell, at least for now. As the overall crypto market deals with ongoing bearish pressures, these four altcoins could be among those most vulnerable to significant price declines.
Frequently Asked Questions (FAQs)
Which cryptocurrencies are considered top sells amid recession fears? The cryptocurrencies currently suggested for selling amidst recession concerns include Ethereum, Solana, Dogecoin, and TRUMP.
Why are these four crypto tokens expected to drop further? These four crypto tokens face potential further declines due to a combination of bearish technical indicators and increasing selling pressure from both individual traders and larger “whale” investors.
What’s driving the recession fears? Experts suggest that the US economy could potentially enter a recession this year, which is generally leading to reduced interest in riskier assets across the board.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
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.
