On the Radar: Coins to Watch this Week 

‘Uptober’ did not disappoint. The total crypto market cap is now at US $1.25 trillion (AU $1.97 trillion), a gain of 18.9% since the start of the month. 

There’s been some notably big moves in the top 100 assets. Injective Protocol (INJ) up 82%, Solana (SOL) up 77% and Mina Protocol (MINA) up 55% in October.  

Below, we’ve outlined some analysis of some long and short-term opportunities, looking at the current market structure. Like all analysis, it’s based on the current conditions and any unexpected events globally could be quite damaging to the momentum we are seeing in crypto at the moment. This could be from geopolitical tensions boiling over, or an unexpected interest rate rise in the US.  

Long-Term Trend Analysis 

Solana (SOL) and Chainlink (LINK) have performed exceptionally well in current market conditions. Notably, there is considerable space before these assets hit key Fibonacci levels when looking at the entire market structure on a weekly time frame.  

Fibonacci levels on higher time frames (like the weekly timeframe) offer key price levels. For example, If SOL or LINK were to rally towards the 0.236 Fib level, we would observe if the price holds above or below this level. If we stay above, we would then target the 0.382 level. From there, the 0.382 level to the 0.5 level, etc. Think of them as price milestones.  

Key Fibonacci levels that often yield a reaction are the 0.382, 0.50, and 0.618 levels. These may offer both levels to take profits and areas for re-entries based on lower time frames & trend analysis.  

Solana (SOL)

Solana has broken out of a rising trend channel and closed above this level on the daily time frame, indicating a sign of strength.  

Should the price fall, an ideal entry would be if the price retested this channel. If the price holds above this channel, we would target the 0.382 level, US $101.30 (AU $159.96), as a technical target.  

This analysis would no longer be valid if the price of Solana were to fall back inside the blue channel.  

Chainlink (LINK)  

LINK is in a similar setup to SOL, having broken out of its developing uptrend channel. This asset may also offer a similar setup as explained above.  

Likewise, this would be considered invalid if the price closes back inside this channel.  

Short-Term Trend Analysis 

The Fibonacci tool can also be used to pinpoint potential areas where buyers might enter during an uptrend. It can also help identify suitable zones for exiting (taking profits). 

Key entry Fib levels are 0.618 and 0.786, whilst key exit Fib extension levels are -0.272 and -0.618.  

What this type of analysis does is play the trend. It anticipates a new higher high forming. 

Using this as a ‘ruler’ we can measure up some current bullish trends where the markets are making new local highs for opportunities. Currently, SUI and Aptos (APT) are great examples of this style of Fibonacci analysis.   

Sui (SUI) 

On the SUI chart above, we can see that there has been a market structure break (MSB) higher, which is when price closes at a new local high. Then, the following reaction is a short-term pull-back. This is where we would use the Fibonacci analysis described above to find an optimal entry and exit.  

Aptos (APT) 

APT is also showing a similar bullish break in market structure, so we can apply the Fib extension to identify areas of interest. We would look at the price to hold at these current levels and move towards the exit fib extension of approximately US $7.70 (AU $12.16).

Invalidation is a break lower here, and new low forming under US $6.70 (AU $10.58).