SafeMoon indecision and resulting drift lower have not revealed many clues as to direction. The presence of converging price trend lines and the tactically important 50 four-hour SMA puts pressure on SAFEMOON to prove itself amidst a cryptocurrency complex environment defined by agitation and uncertainty. As a result, the short-term SafeMoon outlook is neutral until a conclusive release from the price churn.
Over the past few weeks, security firms of blockchain, Hashex, and Pera Finance have revealed vulnerabilities in the SafeMoon digital infrastructure that could potentially lead to third-party intrusions and cost investors millions.
The SafeMoon project has acknowledged the discoveries, and they state a hard fork in the future is needed to solve the problems. Nevertheless, the news is a fresh warning sign to retail investors that they must seek to understand the technology of the new cryptocurrency projects before allocating capital to the uber-hyped tokens.
Despite the unfavorable news, SafeMoon's price has continued the slow drift lower rather than plunging. SAFEMOON price has tried to break the lock of the descending channel level, most recently on June 9, but May’s declining trend line level repelled it. As a result, the digital asset soon slumped back below the channel’s upper boundary level and the 50 four-hour SMA at $0.00000405.
At this level, it is not sufficient for SafeMoon to close above the 50 four-hour SMA; it must close above the June high price of $0.00000447 to confirm a trend change. Beyond the June high, SAFEMOON's price is unfettered to achieve a rally to the 200 four-hour SMA at $0.00000591, delivering a 38% return to investors.
A rediscovery of the FOMO uptrend for rookie altcoins may facilitate a continuation of the SafeMoon rally to the 50% retracement level at $0.00000731. Still, the level will be a challenge owing to the price peaks from May 19-21.
The channel’s lower boundary aligns with the May 19 low of $0.00000261, providing a concise support level for any SafeMoon weakness moving forward. Still, it represents a 30% drop from the current price, so market operators need to be cognizant of the risk inherent in buying SAFEMOON coin at current price levels.
Investing in the crypto market already carries high risk. Hence, SAFEMOON investors need to be informed of the underlying technology of their investment target before allocating funds and accept that FOMO can be instrumental in shaking explicit resistance levels and delivering superior SafeMoon price returns.
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