The Crypto Market Continues to Uptrend
The cryptocurrency market has been experiencing a discreet uptrend over the past week, with around $40 billion added to its total market capitalization. This presents opportunities for value investors who are looking to profit from projects with strong fundamentals. Technical analysis indicators can also help identify good entry and exit points.
The total crypto market cap index by TradingView shows a bullish channel, with two deviations in the chart that broke down and up the trend. On October 27, the index dropped as low as $1.21 trillion, while the latter drove the market cap to as high as $1.29 trillion.
Cryptocurrencies to Avoid Next Week
SafeMoon (SFM)
The SafeMoon (SFM) team was charged by the Securities and Exchange Commission (SEC) for perpetrating a massive fraudulent scheme. As a result, SFM lost more than 70% of its value, trading as low as $0.000043 per token. While it has seen a 36% increase in one day, speculators should avoid getting involved with this asset due to its high risks.
THORChain (RUNE)
Despite having good fundamentals and showing strength in the mid to long-term, THORChain (RUNE) is also on the list of cryptocurrencies to avoid next week. Its price is currently testing an important resistance at $3.16 per token on the weekly chart. The Relative Strength Index (RSI) is pointing towards an “Overbought” status at 77 points. Buying RUNE next week carries high risk, but a breakout from the current zone could lead to an aggressive bull market for THORChain.
Solana (SOL)
Solana (SOL) is another cryptocurrency to avoid next week. While it has shown significant strength in 2023 and is among the best-performing cryptos year-to-date, SOL is currently showing “Overbought” signals on the RSI. Trading analysts predict an imminent price correction for Solana, supported by significant sell-offs observed from FTX and Alameda. There is a remaining threat of over $160 million worth of tokens waiting to be liquidated.
Stay Vigilant in the Volatile Crypto Market
The cryptocurrency market is highly volatile and unpredictable, making it challenging even for artificial intelligence models to forecast price targets and trends accurately. Traders and investors must closely monitor their projects of interest and adjust accordingly as the market continues to evolve.
Hot Take: Beware of Risky Cryptocurrencies Next Week
In the midst of a bullish market, it’s crucial to exercise caution and avoid risky cryptocurrencies that may lead to substantial losses. SafeMoon (SFM), THORChain (RUNE), and Solana (SOL) are among the cryptocurrencies to steer clear of next week due to various factors such as legal issues, resistance levels, and overbought signals. Remember to conduct thorough research and stay updated on market conditions before making any investment decisions.
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