Jonathan Morgan
Independent Analyst
- SafeMoon price action is an outlier for the day, outperforming most of the market with a substantial intraday gain.
- Downside price action remains the most likely direction until a clear uptrend is established.
- Whipsaws in price action are likely to continue.
SafeMoon price action has been a textbook example of volatility and whipsaws. During the Thursday trade session, SafeMoon was up nearly 130%. However, almost all of those gains were promptly sold. Despite the selling, SafeMoon is still 30% higher for the day.
SafeMoon price action develops trading opportunities for both sides of the market
SafeMoon price has developed some of the strongest volatility in months. The result of these wild price swings is an opportunity to capitalize on the long or short side of the market.
There is a theoretical short trade setup for SafeMoon price with a sell stop order at $0.00040, a stop loss at $0.00045, and a profit target at $0.000050. This setup represents a 3:1 reward for the risk, with a much tighter stop due to its proximity to prior all-time lows. For that reason, a two-box trailing stop would be beneficial to protect against any likely whipsaws.
SafeMoon/USDT $0.00005/3-box Reversal Point and Figure Chart
The caveat with the theoretical short trade is the entry must be from at least a triple-bottom. That means SafeMoon price would need to print a reversal column of X’s and then another column of O’s twice to trigger this short entry. It is invalidated if the long entry below triggers first.
On the long side of the SafeMoon price trade, there is a hypothetical setup with a buy stop order at $0.00075, a stop loss at $0.00060, and a profit target at $0.00050. This trade setup represents a 3.33:1 reward for the risk. In addition, a two-box trailing stop would help protect against any profit made post entry.
SafeMoon/USDT $0.00005/3-box Reversal Point and Figure Chart
The entry is based on the breakout above the symmetrical triangle and above a double-top. The hypothetical long trade is invalidated if the short entry triggers first.
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.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.