Most altcoins ended April on a strong note, with some surging by over 50% from their monthly lows. This recovery may see some investors double down and add more into their positions. Some, however, may decide to just sell in May and go away, citing the rising recession risks in the US. This article explores some of the top altcoins to sell in May.
Altcoins to Sell in May and Go Away
The idea of selling assets in May has been around for many years, although there is no empirical data that shows an underperformance during the month. Indeed, as the chart below shows, Ethereum typically does well in May. Bitcoin also achieves a similar result, with an average return of approximately 8%.
What is clear, however, is that the Summer months are among the worst in the crypto industry. For example, the average Bitcoin return in June, July, August, and September are -0.35%, 7.56%, 1.75%, and -3.7%. As such, to some extent, it may make sense to sell in May and go away as the phrase suggests. Some of the top crypto to sell are Algorand (ALGO), Official Trump (TRUMP), and Ethereum (ETH).
Algorand (ALGO)
Algorand is one of the top altcoins to sell in May and go away. FIFA, its most important partner, has jumped ship and is building its own chain. Its DeFi TVL has dropped from over $5 billion at its peak to $116 million. Most notably, Algorand stakers have been dumping the token in the past few months, a sign of waning demand. Therefore, ALGO price faces no immediate catalyst and may continue falling in May.
Official Trump (TRUMP)
Another top crypto to sell in May and go away is the Trump meme coin. It went parabolic after announcing an exclusive dinner with Trump for the top holders. It surged by over 130% between its lowest and its highest levels in April.
While the coin has pulled back slightly from its April highs, it is likely to rebound towards the dinner date. This recovery will happen as investors rush to buy to secure a spot at the dinner.
However, there is also a risk that the Trump meme coin will crash in May. First, Trump may cancel or postpone the dinner for the ethics issues it has raised. Trump is known for postponing controversial things, as he did with his tariffs.
Second, the coin may crash after the event as some of the attendees dump them. Additionally, there is the concept of buying the rumor and selling the news, which can impact price action. This is a concept where people buy an asset ahead of a major event or news and then dump it when it happens.
Ethereum (ETH)
Ethereum is also one of the blue-chip altcoins to sell in May. The main reason for this is that it has formed a giant triple-top pattern, and is now below the neckline. This pattern often leads to more downside, especially after it breaches the neckline level.
Therefore, the most likely Ethereum price forecast is bearish, with the next potential target to watch being at $1,000. This target comes from measuring the distance between the top and the neckline and taking the same measurement from the neckline.
A clear bearish breakout will be confirmed if ETH price rises and retests the neckline. Such a move will signal a break-and-retest pattern, a popular continuation sign.
Summary on Top Crypto to Sell in May
TRUMP, Algorand, and Ethereum are some of the top altcoins to sell in May & go away to avoid substantial losses. The other potential coins to avoid are those with large unlocks coming up like Pi Network and Aptos.
The post 3 Altcoins to Sell in May And Go Away To Avoid Long-term Losses appeared first on CoinGape.
