The cryptocurrency market has been trading in a discreet uptrend in the last seven days, with approximately $40 billion added to its total market capitalization. As usual, the market has plenty of opportunities to explore, but also cryptocurrencies to avoid next week.
As the uptrend continues, value investors will mostly profit from buying or just holding projects with good fundamentals. Additionally, technical analysis indicators might help identify good entry and exit points.
Notably, the total crypto market cap index by TradingView evidences the mentioned bullish channel as its current trading range. There are two deviations in the chart, both breaking down and up the trend. The first was on October 27, with the index going as low as $1.21 trillion, while the latter drove the market cap to as high as $1.29 trillion.
CRYPTOCAP:TOTAL index, 4-hour candlesticks. Source: TradingView
However, even during a solid uptrend, traders and investors can benefit from learning which projects to avoid buying at a certain moment. With that in mind, Finbold turned to the most relevant news and leading indicators to gather insights on what cryptocurrencies should be avoided next week.
SafeMoon (SFM)
On November 1, the Securities and Exchange Commission (SEC) charged the SafeMoon (SFM) team “for perpetrating a massive fraudulent scheme.” This makes the token an easy pick among the three cryptocurrencies to avoid next week.
Today we charged SafeMoon LLC, its creator Kyle Nagy, SafeMoon US LLC, and the companies’ CEO, John Karony, and Chief Technology Officer, Thomas Smith, for perpetrating a massive fraudulent scheme through the unregistered sale of the crypto asset security, SafeMoon.
— U.S. Securities and Exchange Commission (@SECGov) November 1, 2023Within the news, SFM lost more than 70% of its value, trading as low as $0.000043 after a drop from $0.000201 per token. Interestingly, SafeMoon is up 36% on the day, but speculators should avoid getting exposed to the asset due to the high risks of becoming the exit liquidity.
SafeMoon 1-week price chart. Source: Finbold
THORChain (RUNE)
Interestingly, THORChain (RUNE) joins this list despite having good fundamentals and showing strength in the mid to long-term. The interoperability network has gathered the attention of crypto investors and enthusiasts by providing reliable inter-currency services in a decentralized manner.
Nevertheless, its price is testing an important resistance in the weekly chart at the time of publication, for a price of $3.16 per token. This region has acted as an important price support in the past and has shown strong resistance to be regained for five consecutive weeks in 2022, followed by a rejection.
Additionally, the Relative Strength Index (RSI) is pointing to what could be an “Overbought” status at 77 points. All things considered, buying RUNE next week is a high-risk trade, as the price could bounce back in the short term. However, a break out from the current zone could start an aggressive bull market for THORChain.
RUNE weekly price chart. Source: TradingView
Solana (SOL)
Solana (SOL) is another cryptocurrency to avoid next week particularly. Solana has also shown massive strength in 2023, being among the best-performing cryptos year-to-date. Recently, SOL also carved its strength among the top gainers in both the last 30 and the last seven days.
The native token for the Solana Network is trading at $39.72 by press time. SOL is also showing “Overbought” signals on the RSI, navigating above the 75 threshold for a few days.
SOL daily price chart. Source: TradingView
Moreover, trading analysts have already pointed toward an imminent price correction for Solana. This is validated by the constant SOL sell-offs observed from FTX and Alameda, with a remaining threat of more than $160 million worth of tokens still waiting to be liquidated.
All things considered, the crypto market can be extremely volatile and unpredictable, as even artificial intelligence models find it hard to forecast price targets and trends. Therefore traders and investors must follow their projects of interest closely and adjust accordingly, with the inevitable changes that are yet to come.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
