• Safemoon price is bouncing off the 50% retracement level at $0.000725.
  • Investors can expect a massive reversal if SAFEMOON tags the $0.000574 launch pad. 
  • A daily candlestick close below $0.000356 will create a lower low and invalidate the bullish thesis. 

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%.

https://www.tradingview.com/x/V21F555y/

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.

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets tumble, but the worst is yet to come

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets tumble, but the worst is yet to come

Bitcoin price is trying to undo the gains it witnessed over the last week and is currently at the midway point. This sell-off has caused Ethereum and Ripple prices to follow suit, pausing the rallies that altcoins were experiencing. 

More Bitcoin News

Solana price action will get boring unless one of these levels is broken

Solana price action will get boring unless one of these levels is broken

Solana price shows a slow takeover of the bears after bulls managed to move the asset higher. Due to Bitcoin’s sudden sell-off, altcoins, including SOL, have taken a major hit.

More Solana News

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing.

More Cryptocurrencies News

Is a 75% decline still possible for the Ethereum Classic price?

Is a 75% decline still possible for the Ethereum Classic price?

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally.

More Ethereum Classic News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP