This week is critical for U.S. markets as traders await new Consumer Price Index (CPI) data, anticipate a potential interest rate cut by the Federal Reserve towards the end of October, and brace for comments from Chairman Jerome Powell that could influence global sentiment. In this backdrop, attention is also on how cryptocurrencies will react to any policy shifts.
Among the notable assets are U.S.-made coins, known for their dramatic price fluctuations during significant U.S. events. Presently, some stocks hint at a recovery, while others might face a deeper decline, but no major issues appear to be on the horizon.
Solana (SOL)
In the realm of U.S.-made coins, Solana is proving to be one of the more durable altcoins, although it has seen some volatility. It’s down 23% over the past month, largely because of the “Black Friday” crash on October 10th.
Nevertheless, Solana has bounced back by more than 2% in the last week, which is a positive sign. The overall trend remains bullish. Since May, Solana has been moving within an ascending channel, a setup often indicating a continuation of trends.
If Solana’s price climbs above $204 (an 8.4% increase), the following targets could be $223 and $238. A decisive breakout above $253 might lead to new highs in the near future.
The Relative Strength Index (RSI) supports this perspective. Between August 7th and October 11th, Solana recorded higher lows while the RSI marked lower lows. This hidden bullish divergence typically signals that the larger upward trajectory is still in play, even amidst temporary downturns.
However, if the daily close dips below $174 (the channel’s lower trendline), it could weaken this trend and push Solana’s price towards $155 or even $142, which would be concerning for this prominent altcoin this October.
Chainlink (LINK)
Chainlink is next on the list of U.S.-made coins. It’s showing initial signs of recovery despite a notable dip this month. LINK has plummeted over 30% in the past month due to a market-wide downturn, yet it has managed to close positively over the last 24 hours, hinting at some buying interest.
This momentum is possibly fueled by noteworthy accumulation on-chain. Recent data indicates that over 270,000 LINK tokens, valued at more than $4.6 million, were shifted from Binance wallets, implying that large holders may be looking at long-term positions.
Technically, Chainlink fell below a head-and-shoulders pattern with a neckline around $21 on October 10, resulting in a drop to around $14. However, it has since rebounded to find support at $16, which is a crucial level for a potential recovery.
From June 22 to October 10, LINK registered higher lows while the RSI observed lower lows. This hidden bullish divergence suggests that the larger upward trend, exemplified by LINK’s 50% annual rally, remains intact despite recent struggles.
If LINK closes the daily candle above $21, it could trigger a rally towards $24 and perhaps even $27, representing a possible short-term increase of at least 24%. Conversely, if the price falls below $16, it might revisit $14 and even $12.
Stellar (XLM)
Stellar (XLM), another one of the U.S.-made coins, is currently attracting attention. It is undergoing a more intricate setup, making it one of the more volatile altcoins to monitor as October ends.
XLM is trading around $0.31, with continuous whale inflows. The Chaikin Money Flow (CMF) has remained above zero since October 7, indicating that large investors are still adding to their positions despite price sell-offs.
But this optimism might soon face challenges. On the daily chart, the 20-day exponential moving average (EMA) is nearing a point below the 200-day EMA, while the 50-day EMA is approaching a crossover beneath the 100-day EMA. Such crossovers typically indicate that sellers are gaining control.
If both of these crossovers occur, it could intensify bearish momentum, potentially driving XLM down to the key support level at $0.27 (a drop of 11.4%). Falling below this could expose it to $0.22 or even $0.18. Yet, the bearish trend could reverse if XLM rises above $0.35 first.
Interestingly, the derivatives market presents a mixed picture. Bybit’s liquidation map shows short leverage against XLM at $4.74 million, suggesting many traders are expecting a decline. Yet, the long leverage of $2.59 million remains valid. A slight decline in prices could lead to those long positions diminishing, negating the optimism of larger investors.
On the flip side, a price rebound leading to a reduction in short interest could spark a significant upward movement for XLM, especially if there’s an interest rate cut. For now, Stellar (XLM) stands as the wildcard among U.S.-made coins, caught between overconfidence and the potential for a rapid price squeeze.
