Analyst recommends 2 cryptocurrencies NOT to buy now
The cryptocurrency market has seen moments of intense volatility in recent days, with Bitcoin (BTC) falling to around $58,000 and causing several altcoins to follow the downward trend.
However, some digital assets stand out negatively. In this sense, analysts are recommending caution to investors who are thinking about acquiring certain altcoins. Among them are Cardano (ADA) and Avalanche (AVAX), whose performances have been pointed out as negligible compared to the rest of the market.
Cardano’s native token, ADA, has seen a significant drop of nearly 5%, currently trading at $0.33. Despite being one of the most well-known cryptocurrencies on the market, ADA has struggled to maintain its value.
Analysts point out that while Cardano has a solid track record of technological development, the token’s price has been hit hard by a lack of mass adoption and growing competition from other smart contract platforms such as Ethereum and Solana.
“Cardano faces a challenging environment, with few incentives to attract new investors in the short term. The lack of impactful updates and the weak performance of the overall crypto market indicate that the coming months could be even more difficult for ADA,” points out analyst Jordan Lyanchev.
Cryptocurrencies not to buy
Another cryptocurrency that has been attracting negative attention is Avalanche (AVAX). The altcoin also registered a drop of around 2% in the last 24 hours. AVAX, known for its promise of being a highly scalable and fast platform for smart contracts and decentralized applications, has seen its performance decline in recent days, even as the market partially recovers.
Lyanchev highlights that the lack of major partnerships and fierce competition in the DeFi sector have been putting downward pressure on Avalanche’s price.
“Avalanche had all the makings of a strong competitor. However, its stagnant growth and inability to stand out among other protocols have made AVAX a risky bet at the moment,” warns the analyst.
With Bitcoin reclaiming 54.3% of the cryptocurrency market, altcoins remain largely in the red. While tokens like SUI are showing resilience, recording a 5.5% increase to trade above $1.1, most altcoins have struggled to keep up. Ethereum (ETH), for example, is also down more than 3%, currently trading at $2,330.
According to the analyst, the focus for the market in general is on the next meeting of the Federal Open Market Committee (FOMC). This is because a decision on reducing US interest rates is expected. This decision could directly impact the cryptocurrency market, leading to a new bullish moment or prolonging the cycle of declines.