• 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.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset tokenization, an emerging narrative in the ecosystem. 

More Ripple News

ONDO extends gains despite surge in profit-taking

ONDO extends gains despite surge in profit-taking

ONDO, the governance token of Ondo Finance, trades in the green on Friday, defying the effects of a surge in profit taking from large-wallet investors following the 76% gains seen in the past 30 days. 

More ONDO News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for potential short-term correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for  potential short-term correction

Bitcoin price daily candlestick closes below the weekly support level of $67,147. Ethereum price is weakening and could retrace to its immediate support at $3,321. Ripple price fails to close above the 50-day Exponential Moving Average.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis