In cryptocurrency investment, blind operations often bring huge risks. To help investors better avoid risks and seize opportunities, the following details six types of coins to avoid and four types of coins worth holding, providing a reference for your investment decisions.

1. Six don'ts: Core principles for avoiding risks

Coins in a downtrend without stabilizing the 60-day moving average

When a coin is in a continuous downtrend and the mid-to-long-term moving average (60-day line) fails to provide support, it indicates that there are no signs of trend reversal. In such cases, blindly intervening is like 'catching a flying knife,' which can easily lead to being trapped. Therefore, one must patiently wait for signs of a bottom, such as increased volume or stabilization of upward candles, before paying attention to that coin.

Coins that rise after good news is realized

When a coin has completed a certain increase and then releases good news, one needs to be highly vigilant against the 'good news sell-off' trap. The main players often use good news to attract retail investors, and if one chases the price high at this time, they might become the 'last buyer.' Therefore, when facing such coins, closely monitor the timeliness of news and price trends to avoid falling into traps.

Coins with short-term price deviations from the 5-day moving average

After a rapid rise of the coin, its price will deviate significantly from the short-term moving average (5-day line); this situation is considered overbought, and the probability of a subsequent pullback will greatly increase. If one chases high at this time, they may easily get trapped during a technical pullback. It is advisable to wait for the price to pull back to the moving average support level before considering an entry.

Coins with a single-day turnover rate exceeding 30%

High turnover rates (over 30%) indicate that the chips of this coin are being actively exchanged, intensifying the divergence between bulls and bears, which can lead to a sudden increase in market volatility. At this time, intervening can easily be influenced by short-term capital games, increasing investment risks. It is advisable to wait for the turnover rate to return to a reasonable range (below 10%) before acting.

Coins that are forcefully rising against the market trend

In a generally sluggish market, those coins that rise against the trend require caution against 'false bullish traps.' Main players may attract investors' attention through counter-trend rallies, but in reality, they are preparing to sell. Therefore, when facing such coins, one should conduct a comprehensive judgment based on the overall market environment and capital flow, and not be misled by superficial rises.

2. Four don'ts: Positioning strategy to grasp trends

Coins with RSI indicators in the 50-80 range

When the RSI (Relative Strength Index) is in the 50-80 range, it indicates that this coin is in a strong oscillation or upward trend, with bullish momentum dominating. In such cases, it is not advisable to sell prematurely; one can continue to hold along the short-term moving average (such as the 5-day line) until the RSI indicator falls below 50 or shows a top divergence signal, at which point one should consider adjusting their position strategy.

Low-level gap-up coins

When a coin experiences a gap-up from the bottom area without filling the gap, this signals a strong bullish initiation, indicating that market funds have a strong desire to accumulate this coin. For such coins, one can judge based on trading volume (breakthrough with increased volume) and continue to hold while waiting for the trend to continue.

Coins with a bullish moving average system

Short-term moving averages (5-day, 10-day) are above, while mid-to-long-term moving averages (20-day, 60-day) are below, forming a bullish arrangement, indicating that the upward trend of this coin has been established. At this point, one should 'hold tight to the chips' and use the moving averages as a reference for profit-taking, for example, when the price falls below the 10-day line, reduce positions to avoid being influenced by short-term fluctuations.

Coins with high concentration of chips

From the chip distribution chart, it can be seen that chips are concentrated in a certain price range, indicating that the main players have not yet completed their operations for raising and selling. If one sells blindly at this point, they may easily miss the subsequent main uptrend. One can combine changes in trading volume, for example, increased volume during the rise and decreased volume during adjustments, to judge the main players' direction and wait for signals of chip dispersion before taking profit.
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