Crypto Market Downturn: Berachain, Pi Network, Trump Tokens Plunge

The crypto market faced significant pressure over the weekend as investors began to take profits. Bitcoin struggled to surpass the crucial resistance level of $105,000, while most altcoins experienced double-digit declines from their peak levels this week. This market downturn has led to the identification of three crypto tokens that investors should consider selling to avoid long-term losses: Berachain (BERA), Pi Network (PI), and Official Trump (TRUMP).

Berachain, one of the top cryptocurrencies to avoid this year, has seen its fundamentals deteriorate. The BERA token has plummeted from a high of $9.57 in March to $3.1 today, indicating a continued downtrend. The Berachain network's total value locked (TVL) has decreased by 43% in the last 30 days to $3 billion, making it the eighth largest chain in the crypto market. Most decentralized applications (dApps) within the Berachain ecosystem have also shed assets in recent months. Infrared Finance’s TVL dropped by 24% to $1.07 billion, while Kodiak, SatLayer, Dolomite, and Concrete have lost millions in assets over the past 30 days. Additionally, the supply of stablecoins in the Berachain network has continued to fall, with its market cap dropping to $230 million from $1.34 billion in March. Berachain has a maximum supply of 501 million and a circulating supply of 119.45 million, which means holders will face significant dilution starting from February 6 next year when 63.75 million tokens will be unlocked.

Pi Network is another crypto token to sell to avoid long-term losses. The coin has crashed by over 80% from its highest level in February and dropped by over 60% from its peak last week. Pi Network faces centralization issues, with the Pi Foundation holding over 72 billion unlocked tokens. This centralization poses a risk of potential hacks and further downside in the long term. There is also a risk of an imbalance between supply and demand, as Pi Network’s supply is expected to grow by over 1.4 billion tokens in the next 12 months and over 70 billion more in the coming years. The centralization aspect explains why top exchanges have resisted listing it, making the path of least resistance for the Pi token bearish, with the next point to watch being at $0.40.

The Official Trump token is another to sell as it lacks a clear catalyst in the coming months. TRUMP meme coin was trading at $12.87 on Saturday, down by 22% from its highest point this month and 77% above its lowest level in April. The rally occurred as investors bought the coin ahead of Donald Trump’s dinner scheduled for May 22. The risk is that many participants will sell their tokens before or after the dinner. Additionally, the token has formed a double-top pattern at $15.25, with a neckline at $10.38. Therefore, the path of least resistance for the TRUMP price is bearish, with the key target being at $7.17, its lowest point in April.