SafeMoon may have made the turn higher, but traction has been momentary, not resulting in a sustainable, superior rush price higher. Instead, SAFEMOON prefers to get locked in descending channels band with no visible clues as to directional intentions. Thus, until the meme token can overcome the June 18 high, investors are better positioned in cash.
In a spirited attempt to induce a campaign to “pop-off” SafeMoon price, Reddit user posted “GMEandAMCbroughtme” on r/SatoshiStreetBets, where they encouraged SAFEMOON coin followers to create a crypto version of Gamestop and AMC. Unfortunately, the “biggest squeeze of all time” has not materialized as the altcoin has continued to be influenced by the weakness in the cryptocurrency complex, continuing a descending channel pattern going back to June 15.
The rising 50 four-hour SMA did not provide support level over the last few days, a disappointing technical development for SafeMoon price, and an indication that SAFEMOON price was not ready for aspirations of a higher.
The first line of defense for SafeMoon is the crossing of the May 25 declining trend line pattern that was fractured on the June 13 uptick and the June 8 low price of $0.000000326. A failure to hold will release SAFEMOON to test the May 23 low of $0.00000285, and if the cryptocurrency market remains in a downtrend, investors should expect a test of the May 19 panic low price of $0.00000261. In the worst-case scenario, a sweep of the May 19 low would be a 25% decline from the current price.
A close above the falling 200 four-hour SMA at a price of $0.00000458 would alleviate the SafeMoon price uncertainty and allow SAFEMOON to rediscover the early price uptrend detained by the broader market weakness. Yes, it is a 30% gain from the current price. Still, it is cheap insurance to pay for a higher probability entry to seize on a significant advance to at least the 50% Fibonacci retracement level of the May correction at $0.00000731.
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