Can SafeMoon bulls work their charm and trigger a 140% rally again

Safemoon price is undergoing a correction after its impressive rally seen between April 18 and May 26. This healthy pullback will be key in allowing buyers to regroup and recuperate for the next run-up.

Safemoon price ready to rumble

Safemoon price crashed 75% between May 30 and April 18 to set a swing low at $0.000356. This level served as a base for the next month, indicating that consolidation was in play. As bulls emerged victorious, SAFEMOON rallied a whopping 209% and created a swing high at $0.001090.

This move even breached the $0.000962 hurdle. As market participants began booking profits and bulls exhausted, a retracement started to form. So far, Safemoon price has dropped 35% and is bouncing off the 50% retracement level.

While there is a chance SAFEMOON could trigger a run-up from this level, investors should also pay attention to a retest of the 70.5% retracement level at $0.000574.

A bounce off this barrier, however, would provide SAFEMOON tokens at a deep discount, allowing sidelined buyers to step in. 

Therefore, investors can expect the next leg-up to produce a higher high and retest the $0.001360 barrier, hinting at a total gain of 140%.

SAFEMOON/USDT 1-day chart

While things are looking up for Safemoon price, a sudden downturn in Bitcoin’s price could trigger a sell-off. If the ripple effect pushes Safemoon price to produce a daily candlestick close below the range low at $0.000356, it will create a lower low and invalidate the bullish thesis. In such a case, SAFEMOON could tumble into a price discovery mode and produce a new all-time low.