In the past few days, there has been a surge in the cryptocurrency market, resulting in a $40 billion increase in total market value over the past seven days.
Current Situation in Cryptocurrencies
According to the measurement taken on October 27th for the total cryptocurrency market value, it had dropped to $1.21 trillion. However, the subsequent surge reflected in the total value and increased the market value to $1.29 trillion in the second calculation.
Even during a clear upward trend, traders and investors conduct research on which projects to stay away from during certain periods. So, which altcoins should investors consider avoiding next week?
SafeMoon (SFM)
A bombshell accusation emerged on November 1st. The Securities and Exchange Commission (SEC) accused the SafeMoon (SFM) team of conducting a “major fraudulent scheme.” This easily placed the token at the top of the list of three cryptocurrencies that investors should steer clear of next week.
Following the news, SFM lost more than 70% of its value and its price dropped from $0.000201 to $0.000043. Interestingly, SafeMoon then experienced a 36% increase.
THORChain (RUNE)
Interestingly, THORChain (RUNE) made it onto this list despite showing strong performance recently. The price of RUNE appears to have broken the resistance level on the weekly chart at the time of writing.
However, the resistance at $3.16 has previously acted as a significant price support and protected investors as a strong resistance zone for five weeks in 2022. Investors may choose to wait or approach the coin with caution if the daily close remains above this level.
Another point to consider is that the Relative Strength Index (RSI) indicated an overbought value of 77. Taking all these factors into account, buying RUNE next week could be considered a high-risk transaction due to the possibility of a short-term pullback. However, staying above this zone on the daily close could trigger an aggressive bull market for THORChain.
Solana (SOL)
Solana (SOL) stands out as another altcoin that investors should pay attention to next week. After the scandals in 2022, Solana demonstrated significant strength in 2023 and has been one of the best-performing cryptocurrencies since the beginning of the year. SOL has experienced a clear increase in price over the past month.
Currently, the native token of Solana Network is trading at $41.75. SOL also continues to indicate overbought conditions with an RSI value of 61.
Furthermore, analysts have recently pointed out the possibility of a price correction for Solana. Rumors about the sale of SOL owned by FTX and Alameda, as well as the threat of more than $160 million worth of tokens, serve as reasons for this situation.
