The ongoing crypto crash is staring at a new risk as the blue-chip Nasdaq 100 index nears the dreaded death cross. There is a risk that the stock market would continue falling if this cross happens, dragging the crypto market with it. This article explores some of the top altcoins to sell if the death cross happens.
Nasdaq 100 Index Nears Death Cross
The US stock market has crashed as the Trump tariff tantrum continues. As shown below, the spread between the 200-day and 50-day Weighted Moving Average (WMA) has continued to narrow, risking the dreaded death cross pattern.
If this pattern happens, the next crucial level to watch will be at $17,435, down by almost 10% from the current level and 20% below the year-to-date high, bringing it to a bear market.
NASDAQ 100 index
Top Altcoins to Sell If The Nasdaq 100 Forms a Death Cross
A US stock market crash would likely lead to more weakness in the crypto market. Some of the top altcoins to sell in this case would be those with weak fundamentals and technicals, including Toncoin (TON), Avalanche (AVAX), Ethena (ENA), and Cronos (CRO).
Toncoin (TON)
Toncoin is one of the top altcoins to sell because of its weak fundamentals. Top tokens in the TON Blockchain like Hamster Kombat, TapSwap, and Notcoin have crashed, costing investors billions. Also, on-chain data shows that the number of active addresses, wallets, and users has tumbled, while Toncoin’s inflation has jumped.
On top of this, Toncoin price has formed a death cross pattern on the daily chart. It has also formed a break and retest by moving back to the key point at $2.91, its highest point in December 2022. Therefore, the coin will likely keep falling as sellers target the key support at $1.08, the lowest point in May 2023.
Toncoin Price
Avalanche (AVAX)
Avalanche is also one of the top altcoins to sell. While AVAX is a top blue-chip coin, its ecosystem growth has lagged even after the major Avalanche9000 upgrade in December.
The upgrade has not led to major breakthroughs, and the network is losing share to newer chains like Berachain and Sui. Technically, AVAX price has formed a descending channel and a death cross, pointing to more downside.
Avalanche Price
Ethena (ENA)
Ethena price has crashed by over 75% from its highest level this year. The main reason why ENA is one of the top altcoins to sell is its similarity with Terra, which collapsed in 2022. Ethena derives its value from the EthenaUSD, an algorithmic stablecoin that yields over 5%.
Like Terra, the USDe stablecoin is not backed by anything, meaning that it may de-peg in case of major volatility. Ethena price also remains below all moving averages, pointing to further downside.
Cronos (CRO)
Cronos price has plunged by over 64% from the December high as the crypto sell-off continued. The main reason why Cronos is one of the top altcoins to sell is that the developers have proposed launching strategic reserves.
To do that, they have suggested creating 70 billion new tokens, undoing a burn that happened in 2021. If the proposal passes, existing CRO holders will be diluted, which will affect its price.
Summary: Other Crypto to Sell if the Nasdaq 100 Forms a Death Cross
Some of the other popular crypto to sell in case the Nasdaq 100 index forms a death cross are Filecoin, Quant, Mina Protocol, and Zilliqa.
The post Top 4 Altcoins to Sell As the Nasdaq 100 Index Nears Dreaded Death Cross appeared first on CoinGape.
