The crypto market is eagerly awaiting next week’s FOMC meeting after CPI data revealed that inflation had fallen to 2.8%. Traders are now watching for signals and remarks by Fed committee members on interest rates, which could spike the crypto market volatility. As traders brace for potential volatility, 5 crypto tokens appear vulnerable to downside pressure. In this article, we explore the top 5 crypto to sell ahead of this meeting.
Top 5 Crypto to Sell Ahead of Next Week’s FOMC Meeting
97% of investors expect that the Federal Reserve will leave the interest rates unchanged during the March 19 meeting despite the fall in US CPI. Per the CME FedWatchTool, investors also agree that the Fed will not lower rates until the June 2025 meeting.
Last week, Federal Reserve Chair Jerome Powell stated that if inflation fails to move sustainably towards the Fed’s 2% goal, it could maintain monetary tightening for longer. Powell’s hawkish stance comes from trade policies adopted by the Trump administration.
If the Fed fails to trim rates, some volatility is expected in the crypto market. Moreover, the increased odds of the US economy falling into a recession have reduced the demand for risk assets such as crypto as investors flock to assets like gold.
So as investors await to hear the Fed’s decision on interest, which are the top 5 crypto to sell?
Solana (SOL)
Solana is one of the top crypto to sell ahead of FOMC. SOL price faces risk after Alameda unstaked nearly $23M worth of Solana, triggering concerns of a possible sell-off. These tokens could be dumped into the market, adding to the selling spree facing SOL.
Solana price is also on the verge of a 35% decline after SOL DEX volumes fell by around $90 billion within two months, showing weak network activity. Slow network activity means reduced demand for SOL amid rising sell-side pressure.
Popular analyst Gert Van Lagen noted that Solana faces a massive crash after forming a double top pattern. Moreover, if the Fed maintains high rates and this pushes the US into a recession, the analyst noted that it will be the first time that SOL experiences such extreme bearishness. With declining utility and an end of the meme coin season, SOL is a prime crypto to sell.
Dogecoin (DOGE)
Meme coins tend to see the biggest price drops in case of market panic, making Dogecoin a top crypto to sell to avoid long-term losses. Despite a possible DOGE price boost from the Bitwise ETF filing, the meme coin is under extreme bearish pressure as depicted by the descending parallel channel on the Dogecoin price chart.
The RSI is oversold and the MACD indicator shows that the bearish trends are prevalent. These indicators hint that a drop to 123.6% and 161.8% Fibonacci levels of $0.13 and $0.02 may happen.
Hyperliquid (HYPE)
Hyperliquid price is down by more than 64% in just three months and it is likely to extend the decline next week after the FOMC meeting. Besides, the Hyperliquid decentralized perpetual exchange is facing a massive loss after an Ethereum whale was liquidated. This loss exposed a potential vulnerability with the platform and accelerated a price decline.
With investor confidence in the DEX being shaken, the HYPE token will likely see a weak price performance leading to the US FOMC meeting next week. This makes it a top crypto to sell.
Trump Coin (TRUMP)
Trump coin is also an ideal crypto to sell ahead of the FOMC meeting. The reason for this is that US economic policies tend to impact projects associated with the US President. Therefore, despite TRUMP’s brief rally, another dip lies ahead for this meme coin.
After the recent rally, Trump Coin is crashing again, with the CMF tipping south towards the negative region, This confirms high selling pressure, which could lead to steep price declines. Bollinger bands have also narrowed, suggesting that TRUMP may enter into consolidation.
Uniswap (UNI)
Uniswap has dropped by more than 19% over the past week and has failed to make meaningful gains despite US inflation data flipping bullish. Moreover, Uniswap is one of the top decentralized exchanges and as trading activity across the crypto market cools due to uncertainty, it could have an impact on the price, pushing it lower. For this reason, UNI is a good crypto to sell.
Bottom Line
The upcoming FOMC meeting could have a notable impact on crypto prices. If the Fed fails to ease the monetary policy, it could spark market volatility. Solana, Dogecoin, Hyperliquid, Trump Coin and Uniswap are the best crypto to sell ahead of this event.
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