Safemoon price has unsafe liquidity levels, here’s what traders should be aware of
|- Safemoon price has breached and retested the key $0.005000 level.
- The volume indicator remains unbiased as price continues within a descending parallel channel.
- Invalidation of the downtrend is a close above $0.0005000.
Safemoon price downtrend is justified but must be tended too as the invalidation level is still within close proximity.
Safemoon price in a tight spot
Safemoon price is following the technicals mentioned in previous outlooks. The Safemoon price saw an impressive 80% rally last month as one of the only cryptocurrencies to outperform and bring in net positive gains for investors. However, the rally was short-lived as the bears flexed their power above the breached parallel trend channel. It was mentioned that the controversial meme token would ultimately retest the $0.0005000 apex level before more uptrend gains could be forecasted.
Safemoon price has fully validated the previous thesis as the bears have managed to push the SFM price through the key apex barrier. Thursday’s market value fluctuates around $0.0004220. If market conditions persist, a “sweep the lows'' event could occur, targeting $0.0002500 for up to a 50% decrease in value. Traders looking to join the party south should keep the $0.0005000 level, ensuring that a closing candle does not occur above the zone.
SFM/USDT 4-Hour Chart
Invalidation of the bearish downtrend remains at $0.0005000. If a 4-hour candle closes above this level, the bulls could trigger a bullish frenzy with targets at $0.0005880, resulting in a 40% increase from the current Safemoon price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.