Is the Safemoon price warning investors of a future rug pull?

Safemoon price fails to break out from a descending parallel channel.
SFM price has experienced a death cross of the 8- and 21-day simple moving averages.
Invalidation of the bearish trend is dependent on a breach above the parallel channel currently positioned at $0.0006050.

Safemoon price shows signs of failure. More decline is expected unless the bulls can hurdle the descending trendline.

Safemoon price looks fatigued

Safemoon price could experience more decline as the bulls are being tested at the psychological $0.0005000 level. The bulls established a strong rally during the second week of June. On June 15, a large bullish engulfing candle pierced through the descending parallel channel. Unfortunately, the trend's break showed no follow-up as the bears have now reconquered the profit-taking. consolidation breaching more than 50% of the entire rally.

Safemoon price currently trades at $0.0004856. A break below the $0.00050000 could become the catalyst to send the Safemoon price an additional 20% lower into the $0.0004000 levels. The 8- and 21-day moving averages provide confluence of the bearish outlook as a death cross has been witnessed on the 3-day chart. The bulls will need to step in very soon to oppose the demise of the Safemoon price as death crosses' are notorious for producing steep erratic price action in the cryptocurrency market.

tm/sfm/6/29/22

SFM/USDT 3-Day Chart

Invalidation of the bearish trend remains a breach and close above the descending parallel channel currently positioned at $0.0006050. If the bulls can conquer this critical barrier, the May $0.0010358 swing high will be a potential bullish target resulting in a 110% increase from the current Safemoon price.

Share: Cryptos feed

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.

Join Telegram