SafeMoon price neutralized by technicals, leaves SAFEMOON craving FOMO
|- SafeMoon price confronted by the resistance offered by May’s descending trend line.
- SAFEMOON 50 four-hour simple moving average (SMA) and minor trend line from May 25 reinforce the drift lower.
- A close above $0.00000447 directs investors’ attention to upside trading opportunities.
SafeMoon price indecision and resulting drift lower have not revealed many clues as to direction or timing. The presence of converging trend lines and the tactically important 50 four-hour SMA puts the pressure on SAFEMOON to prove itself amidst a cryptocurrency complex environment defined by agitation and uncertainty. As a result, the short-term SafeMoon price outlook is neutral until a conclusive release from the price churn.
SafeMoon price respects technical parameters
Over the past few weeks, blockchain security firms, Hashex and Pera Finance have revealed vulnerabilities in the SafeMoon digital infrastructure that could potentially lead to third-party intrusions and cost investors millions.
SafeMoon 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 underlying technology of the new cryptocurrency projects before allocating capital to the uber-hyped tokens.
Despite the unfavorable news, SafeMoon price has continued the slow drift lower rather than plunging. SAFEMOON has tried to break the lock of the descending channel, most recently on June 9, but May’s declining trend line repelled it. As a result, the digital asset soon slumped back below the channel’s upper boundary and the 50 four-hour SMA at $0.00000405.
At this point, it is not sufficient for SafeMoon price to close above the 50 four-hour SMA; it must close above the June high of $0.00000447 to confirm a trend change. Beyond the June high, SAFEMOON is unfettered to achieve a rally to the 200 four-hour SMA at $0.00000591, delivering a 38% return to investors.
A rediscovery of FOMO for rookie altcoins may facilitate a continuation of the SafeMoon price rally to the 50% retracement at $0.00000731. Still, the level will be a challenge owing to the price peaks from May 19-21.
SAFEMOON/USD 4-hour chart
The channel’s lower boundary aligns with the May 19 low of $0.00000261, providing concise support for any SafeMoon price 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 at current price levels.
Investing in the cryptocurrency market already carries significant 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 and delivering superior SafeMoon price returns.
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.