Why You Should Sell These 3 Altcoins in October

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As a seasoned researcher with years of experience navigating the volatile crypto market, I have witnessed numerous bull and bear runs. The recent Bitcoin price reversal has been a stark reminder of the unpredictable nature of this space.

After Bitcoin‘s drop from the $70,000 mark, there’s been a resurgence of selling in October. This is unusual because traditionally, the fourth quarter is bullish. However, some alternative cryptocurrencies are showing signs of being overbought, which could lead to a broader market correction and a major downturn. As a result, cautious traders might decide to sell these assets in October to protect their investments.

Top 3 Altcoins to Sell Before a Market Pullback in October

The crypto market has seen a lot of ups and downs in October, and while certain assets look promising for future gains, others might be too high and could experience declines. Skilled traders can spot which altcoins to sell by examining important indicators such as the MVRV (Market Value to Realized Value) ratio.

FTX (FTT)

As an analyst, I’ve observed that the FTX token has been moving laterally for more than a year, with a noticeable decline in its daily trends. At the moment I’m reporting, the FTT price stood at approximately $1.78, preserving a market capitalization of around $584.1 million.

As a researcher delving into the realm of cryptocurrencies, I’ve noticed an intriguing development based on Santiment data. The MVRV (Market Value to Realized Value) ratio for FTT (Fantom Token) over the past 365 days has soared, hovering approximately at 32%. Typically, a high MVRV ratio suggests that an asset might be overbought, potentially signaling that investors could start cashing out their gains.

The drop in FTT’s price from $3.43 to $1.75, happening concurrently with a decrease in the MVRV ratio from 101% to 32%, suggests that the asset may continue to experience a long-term decline.

Litecoin (LTC)

Instead of other digital currencies, the Litecoin price surged from $49.8 to $70 – representing a 42% rise – over a span of three months. However, the Litecoin’s price experienced renewed selling pressure at approximately $76, leading to an 8% drop back down to $70.6, while still holding a market capitalization of around $5.3 Billion.

Moreover, it’s worth noting that the 30-day MVRM ratio has surged to 24.8%, suggesting that short-term investors have seen profits. These speculative investors are known for swiftly cashing out their gains, an action that might cause a spike in volatility and increased selling pressure.

Aave (AAVE)

In light of the current market downturn, the price of AAVE has significantly dropped from $165.8 to $141, resulting in a 14.8% decrease. This bearish shift in trend creates a new low peak, suggesting that the market’s attitude is shifting from buying during declines to selling during upturns.

Additionally, it’s worth noting that the 90-day MVRV (Mayer Multiple Value Ratio) has climbed to 2.36%, suggesting that individuals who purchased AAVE over the past three months are currently making a profit. This situation might lead to increased selling pressure as these investors may choose to cash out their gains, which could trigger a temporary price drop due to profit-taking.

Conclusion:

Instead of focusing on purchasing popular cryptocurrencies in anticipation of greater profits, the Multi-Vehicle Value (MVRV) ratios indicate that FTX, Litecoin (LTC), and Aave (AAVE) could be overvalued and may soon experience a price adjustment or correction.

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2024-10-26 10:12