The crypto market is facing heightened volatility as the risk of the US economy falling into a recession spiked. While some crypto tokens may withstand the ongoing crash, some could struggle under the heightened selling pressure and fearful market sentiment. As traders look to minimize their losses, here are four crypto tokens to sell to prevent long-term losses.
4 Crypto Tokens to Sell as Recession Risk Spikes
The cryptocurrency market was spooked after the risk of the US economy plunging into recession this year surged to 40%. President Donald Trump’s trade policies and tariff wars have sparked concerns about economic stagnation, forcing investors to move away from risk assets.
A poll by Reuters also stated that many economists anticipate that the economy will slow down due to tariff chaos. The poll further stated that shifting economic policies have made it harder for the Federal Reserve to track inflation, adding to the market uncertainty.
As crypto traders brace for more volatility ahead of US inflation data this week and the FOMC meeting next week, below are the four crypto tokens to consider selling to prevent long-term losses.
Ethereum (ETH)
Ethereum price fell below $1,900 for the first time since November 2023, making it one of the top crypto tokens to sell. During this decline, an ICO whale moved 7,000 ETH valued at more than $12M to the Kraken exchange, adding to the sell-side pressure. More whales have also been reducing their ETH holdings after selling 33,000 ETH in the last three days.
Institutions are also not willing to absorb the additional selling pressure. This is after spot ETH ETFs posted $122M in outflows in the last three consecutive days according to SoSoValue. As institutional demand weakens, ETH price is poised for more declines.
Solana (SOL)
If the US economy enters a recession, top USA coins such as Solana are poised to post the steepest declines, making SOL one of the crypto tokens to sell to avoid long-term losses. Solana price today trades at $124 after a significant 9% drop in the last nine days.
According to Lookonchain, whales are also selling Solana. This is after one large address sold 108,688 SOL for $12.2M. This whale sold SOL at a loss of $7.48M, suggesting a lack of optimism that the price could recover.
Solana price is also on the verge of a steep decline after the formation of a death cross. Once the altcoin confirms this crossover, it supports a bearish Solana price prediction and a high chance that the price will drop below $100 to the 123.6% Fibonacci retracement level of $73.
Dogecoin (DOGE)
Dogecoin price also shows a bearish outlook after falling by 16% in seven days. Following this decline, DOGE open interest has shrunk from $8 billion to $3 billion in less than three months, indicating that most traders are not opening new positions due to low conviction that the price might recover.
Dogecoin has breached the lower trendline of its descending parallel channel, which indicates that the bearish momentum is growing strong. The RSI is oversold and the Awesome Oscillator bars show a surge in selling activity.
Moreover, the declining stock price of Elon Musk’s Tesla could impact Dogecoin price leading to more losses. The lack of a bullish catalyst makes DOGE one of the top crypto tokens to sell.
TRUMP (TRUMP)
The TRUMP meme coin is also poised to record the most losses if the US economy falls into a recession. Therefore, it is one of the top crypto tokens to sell for traders looking to minimize losses.
With the hype around meme coins cooling down, there is a minimal chance that TRUMP price will recover. Therefore, even with sellers being exhausted as the oversold RSI shows, the weak demand could see TRUMP consolidating at the current low levels. The AO histogram bars also show rising bearish momentum, which will drive the price lower.
Final Thoughts on Top Crypto Tokens to Sell
Ethereum, Solana, Dogecoin, and TRUMP are some of the top crypto tokens to sell today if you are looking to avoid long-term losses. As the crypto market continues facing bearish pressure, these four altcoins could register significant price declines.
The post 4 Crypto Tokens to Sell to Prevent Long Term Losses as Recession Risk Spikes appeared first on CoinGape.
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