Crypto to Sell

5 Crypto to Sell to Avoid Losses After Fed’s 50 bps Interest Rate Cut

Published

6 hours ago

September 19, 2024

With the US Federal Reserve cutting interest rates by 50 basis points on September 18, the crypto market is preparing for an upward thrust. However, a few top altcoins have already surged quite a bit in anticipation of the rate cuts. So, investors should consider selling these 5 cryptos to avoid losses.

5 Crypto to Sell After Fed’s 50 bps Interest Rate Cut

These five cryptocurrency tokens are flashing sell signals after the September 18 Fed Meeting (FOMC). Investors would be better off selling these tokens now to avoid losses.

Render (RENDER)
Polygon Ecosystem Token (POL)
Uniswap (UNI)
Optimism (OP)
BabyDogeCoin (BABYDOGE)

Render

Since September 6, Render price surged nearly 20%. This uptrend was a common theme across altcoins due to the anticipation of the Fed’s interest rate decision on September 18. As of September 19, Santiment data shows that the daily active addresses for RENDER dropped by 66% after noting a peak on September 13.

This crypto will likely sell-off after the Fed has cut rates and OpenAI hype surrounding the new model has died down.

Cryptos to sell - RENDER Daily Active Addresses — RENDER Daily Active Addresses

Polygon

Polygon’s recent migration and rebranding from MATIC to POL attracted a lot of eyeballs, but the hype seems to be over, so investors need to consider keeping a close eye on POL. Since the rebrand, there has been a massive uptick in supply on exchanges while the top holders continue to sell. This development shows clear signs of disinterest from whales and could be signs of a correction for MATIC price.

Crypto to sell - POL Supply on exchanges, Supply held by top holders — POL Supply on exchanges, Supply held by top holders

Uniswap

The third altcoin to sell after the Fed’s 50 basis point cut is Uniswap. While there are rumors of a potential fee switch proposal during the v4 upgrade, investors should refrain from holding UNI for one singular reason – 100% unlock. With all tokens circulating in the market, there will be a high selling pressure for this crypto and it could impact the short-term outlook of UNI price.

Optimism

Once Optimism was considered one of the top Ethereum Layer 2 scaling solutions, but as of 2024, OP has moved out of the spotlight. The network growth for OP hovers around 500 and has slid from a peak of 2500, which is a 5x decline.

The network growth metric is used to gauge new users joining the Optimism blockchain. A spike in this indicator shows that new capital is flowing in and investors are interested in the underlying token at the current price levels. However, for OP this is the complete opposite, since the network growth is dropping. As a result of this, OP could see a further spike in selling pressure going forward.

Crypto to sell - OP network growth — OP network growth

BabyDogeCoin

After recent listing on Binance, this top meme coin surged 130% and is holding up well. Typically, exchange listing-based rallies are often short-lived, leading to a full reversal. However, BABYDOGE shows strength, but investors must keep a close eye for weakness. In case, the buying pressure exhausts, investors should expect this crypto to slide nearly 40% to key support level at $0.00000000132.

These 5 cryptos could see a strong reversal due to the sell signals coupled with the Federal Reserve cutting interest rates on September 18. Therefore, investors should consider selling these altcoins to avoid losses.