As the cryptocurrency market undergoes significant fluctuations, savvy traders are often on the lookout for signs of overbought altcoins. October 2024 has shown a notable shift in market dynamics, particularly with Bitcoin’s recent decline from the psychological threshold of $70,000.
This downward momentum has triggered a wave of selling across various altcoins, leading to increased pressure on traders to make informed decisions. In this article, we’ll discuss why you should sell these 3 altcoins this October, as they are showing signs of being overbought and may be good candidates for selling this month.
Why You Should Sell These 3 Altcoins This October?
Before diving into specific altcoins, it’s crucial to understand the MVRV (Market Value to Realized Value) ratio. This metric helps traders gauge whether a cryptocurrency is overvalued or undervalued relative to its historical price movements. A high MVRV indicates that traders may be more inclined to take profits, leading to a potential price correction. For October, several altcoins exhibit elevated MVRV ratios, signaling a likely downturn.
FTX (FTT)
- Current Price: $1.78
- Market Capitalization: $584.1 million
- 365-Day MVRV: 32%
FTX’s token, FTT, has struggled to maintain upward momentum over the past year, experiencing a slight downward trend. Recently, the price dropped from $3.43 to $1.75, reflecting a decline in investor confidence. With an MVRV of approximately 32%, FTT is positioned as an overbought asset, making it vulnerable to profit-taking. As traders look to safeguard their investments, selling FTT might be a prudent strategy to avoid further losses as market sentiment shifts.
Litecoin (LTC)
- Current Price: $70.6
- Market Capitalization: $5.3 billion
- 30-Day MVRV: 24.8%
Litecoin has seen a substantial recovery, climbing from $49.8 to $70. However, it has recently encountered selling pressure around the $76 mark, causing the price to settle back to $70.6. The 30-day MVRV of 24.8% suggests that short-term traders are likely sitting on profits, increasing the likelihood of selling pressure. Given the current market conditions, it may be wise for investors to consider selling Litecoin to capitalize on recent gains before a potential correction occurs.
Aave (AAVE)
- Current Price: $141
- Market Capitalization: Not specified
- 90-Day MVRV: 2.36%
Aave has experienced a notable decline, dropping from $165.8 to $141, representing a 14.8% decrease. This trend indicates a weakening bullish momentum, as the asset has established lower highs. The 90-day MVRV of 2.36% indicates that recent investors may be experiencing profits, which could prompt them to lock in gains. With the altcoin exhibiting signs of bearish behavior, selling Aave could help mitigate potential losses and preserve capital in an uncertain market.
Market Overview: Implications of Bitcoin’s Price Movement
The recent decline in Bitcoin’s price has a domino effect on the entire cryptocurrency market. Historically, Bitcoin serves as a market leader, and its fluctuations often dictate the movements of altcoins. As Bitcoin struggles to hold above $70,000, many altcoins are at risk of suffering similar downturns.
Time to Act
For traders and investors, October presents a unique set of challenges and opportunities in the cryptocurrency market. With certain altcoins showing signs of overvaluation, now might be the perfect time to consider selling. FTX (FTT), Litecoin (LTC), and Aave (AAVE) are all at risk of experiencing downward price corrections, making it essential to assess your portfolio.
As always, informed decision-making based on market indicators like MVRV can help you navigate the complexities of cryptocurrency trading. Stay vigilant, and ensure you’re making moves that align with your financial goals.
Ready to protect your investments? Don’t wait for the market to shift further—discover the altcoins to sell this October and safeguard your portfolio today!