• SafeMoon price continues to oscillate within a descending channel formation on the four-hour chart.
  • Declining 50 four-hour simple moving average (SMA) providing resistance since May 31.
  • 40% gain is possible if May’s declining trend line is conquered.

SafeMoon price evolution since May 25 has tested the patience of bullish investors. The rookie digital asset has not commanded sustainable buying pressure, instead staying locked in a descending channel offering brief swing trading opportunities. Until SafeMoon price can free itself from the channel and reignite SAFEMOON enthusiasm, investors should be content with minor double-digit returns.

SafeMoon price weighed down by broader crypto market woes

SAFEMOON was launched on March 21 with a SafeMoon price of $.0000000010, and it reached $0.00001500 on April 20, rewarding the first adopters with an astronomical return. The magnitude and speed of the advance captured headlines, lifting the number of users to over one million.

The market capitalization currently rests at $2.23 billion, ranking it #204 in the cryptocurrency rankings with over 585 trillion tokens in circulation, according to CoinMarketCap. It is relatively inexpensive compared to most digital assets allowing investors to amass positions in the millions of SAFEMOON.

SAFEMOON developers can burn tokens manually with the logic that a smaller supply will drive up the price. In the protocol whitepaper, SAFEMOON state that it “aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term.”

SAFEMOON is not listed on the major cryptocurrency exchanges, so enthusiastic investors need to access it on the decentralized PancakeSwap exchange.

Currently, SafeMoon price has fallen into a descending channel, replacing the sharp downtrend into the May 23 low. The channel has remained below the declining 50 four-hour SMA, and the volume underpinning the formation has been below average.

A breakout above the channel’s upper boundary at $0.00000476 should ignite a rally to the May 11 declining trend line at $0.00000565 and then the 38.2% retracement of the May correction at $0.00000620.

The 200 four-hour SMA at $0.00000668 will be an epic confrontation, considering that it resisted the rebound attempt from the May 19 low. It would still represent a 40% gain from the channel’s upper boundary as of today.

Ambitious SAFEMOON investors should target the 50% retracement at $0.00000731 and then the 61.8% retracement at $0.00000841, which aligns with considerable price congestion gathered from May 6 to May 18.

SAFEMOON/USD 4-hour chart

SAFEMOON/USD 4-hour chart

After tagging the all-time high at $0.00001500 on April 20, SafeMoon price collapsed 90% as FOMO exited the building. Based on that experience, investors need to be prepared for the downside.

A four-hour close below the channel’s lower boundary at $0.00000341 would alert investors to anticipate a test of the May 23 low at $0.00000285 and the May 19 low at $0.00000261, leaving a 35% decline for the undisciplined market operators.

SafeMoon price is defining a price history and personality, searching for the next wave of brave investors and hype to transform it into a mainstay digital asset, such as what occurred with DOGE. For now, SAFEMOON will be attached to the trendless conditions of the larger cryptocurrency market until that comes to fruition.

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

Three reasons why DOGE price will not be back above $0.17 anytime soon

Three reasons why DOGE price will not be back above $0.17 anytime soon

Dogecoin price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. With such a move, losses would sum up to 55% of depreciation.

More Dogecoin news

Cardano price could go either way next week, but downtrend still rules

Cardano price could go either way next week, but downtrend still rules

Cardano price closes the week with another loss on the books. ADA price looks set to instead chose more downside as investors are turning away from cryptocurrencies. Expect another drop with at least a retest at $0.415.

More Cardano news

Why another 60% drop in SHIB price is inevitable

Why another 60% drop in SHIB price is inevitable

Shiba Inu price is too far gone from the significant pivotal level of $0.00001708 to make a strong comeback for now. Expect to see price action consolidate around current levels, slightly above $0.00001000, before another round of tail risks will come back to bite price action.

More Shiba Inu news

A weekly close below $0.50 spells another correction ahead for XRP price

A weekly close below $0.50 spells another correction ahead for XRP price

Ripple (XRP) price came close to a full recovery after the positive shift in sentiment on Friday, but as long as price action remains below $0.50, there is still no evidence of a fundamental turnaround in sentiment. Expect to see further downward pressure as several bearish pressures are not easing.

More Ripple news

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis