SafeMoon price action reflects the general lack of direction in the crypto complex, showing no commitment. However, the descending triangle pattern proposes a clear roadmap for SAFEMOON price, placing the risk to the downside and forecasting a potentially large loss if the bearish pattern resolves to the downside.
A descending triangle pattern is classified as a bearish pattern formation that usually emerges as a continuation pattern during a downtrend and indicates distribution. The horizontal trend line signifies demand that blocks the security from falling, while the lower reaction highs form the declining trend line pattern as selling pressure increases.
Since May 21, SafeMoon's price has shaped a descending triangle pattern with the horizontal trend line at a price of $0.00000285 providing the trigger. On several occasions, SAFEMOON's price has glided below the horizontal trend line but has failed to register a daily close below, creating a challenge for eager bears.
If SafeMoon's price records a daily close below the price of $0.00000285, it will trigger the descending triangle pattern and officially shift the focus to the downside potential for the SAFEMOON price. The support levels that will intervene if selling pressure swells include the May 19 low of $0.00000261 level and the June 22 low of $0.00000230, representing a 20% decline from the horizontal trend line.
Beyond the June 22 low, SafeMoon is clear to plunge to the April 21 crash low of $0.00000150 before reaching the measured move target of $0.00000133, representing a 50% decline from the horizontal trend line.
A collapse of 50% would wipe out most of the 2,140% gain accumulated during the explosive rally from April 15 to April 20 and secure an oversold reading on the SAFEMOON daily Relative Strength Index.
Conversely, if SafeMoon can complete a daily close above the price of $0.00000338, it would alleviate the pressure generated by the declining 10-day SMA at a price of $0.00000306 and free SAFEMOON to target the descending triangle’s upper trend line at a price of $0.00000371, yielding a 30% gain from the current price.
With SafeMoon's price currently trading at a price of $0.00000287, SAFEMOON is hanging on the edge of a significant decline that will further dent the hopes of the novice crypto becoming a compelling investment alternative in the market. For now, investors need to be patient and let the pattern resolve, one way or the other.
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