Most altcoins closed April with significant gains; some rallied over 50% from their monthly lows. Some investors may be tempted to increase their positions due to this optimistic momentum. Others, particularly given growing recession concerns in the United States, would follow the old market adage—sell in May and go away. In this post, we focus on essential altcoins that may experience negative pressure in May 2025.
Sell in May? What Crypto History Tells Us
Although the “sell in May” story has endured for decades, there is no concrete data to show regular underperformance during this month. For instance, Ethereum has historically demonstrated substantial increases in May; Bitcoin is not far behind, averaging roughly 8% in returns.
On closer inspection, however, crypto performance during the summer reveals a different picture. From June to September, the average returns of Bitcoin are conflicting: -0.35% in June, 7.56% in July, 1.75% in August, and -3.7% in September. This volatility strengthens the case for a cautious approach in May, especially for altcoins that lack robust foundations or are facing speculative headwinds.
Algurand (ALGO) Slipping from Relevance
Among the best altcoins to sell in May is Algorand. Its central cooperation with FIFA has stopped; FIFA is currently developing its blockchain system. Algorand’s DeFi total value locked (TVL)—which plummeted from over $5 billion to barely $116 million—has dropped sharply in line with this divergence. Moreover, large stake withdrawals indicate declining confidence among long-term holders. Without a clear catalyst in sight, ALGO may continue to drop this month.
Official Trump, Trump, Speculative
After declaring a secret dinner for top holders, the Trump meme coin surged in April, reaching a peak of 130% growth. Although it has pulled back slightly, a short-term rebound is likely as buyers position themselves ahead of the event.
However, several risks lie ahead. If the dinner is postponed or cancelled due to ethical concerns, the coin could crash sharply. Even if the event goes ahead, the price may tumble afterwards as early investors take profits—a classic case of “buy the rumour, sell the news.” For risk-averse investors, TRUMP could be a prime candidate to exit in May before volatility strikes.
Technical Ethereum (ETG)
Despite being a blue-chip asset, Ethereum may also be vulnerable this month. The ETH price chart reveals a troubling triple-top formation—a bearish reversal pattern. After slipping below the neckline, ETH has opened the door to further declines. If the price attempts a retest and fails, it may confirm a break-and-retest continuation pattern.
Technical analysis suggests a possible drop toward the $1,000 level, derived from the height of the pattern. Without strong bullish momentum, Ethereum’s short-term outlook looks increasingly bearish.
Is May the Time to Exit?
Selling in May might not always be the best move, but for some altcoins, it’s a strategy worth considering. Algorand, TRUMP, and Ethereum all face distinct headwinds that could weigh heavily on prices. Other projects with upcoming token unlocks—such as Pi Network and Aptos—also present potential downside risks.
