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Safemoon price due for further downside as Bullish count is invalidated

  • Safemoon price has invalidated a potential 50% recovery rally.

  • Bears are in complete control of the trend.

  • A break above $0.00138 will invalidate this thesis.

Safemoon price is in jeopardy, as the bears have taken complete control of the trend. At the current time, there is no indication of a bullish reversal. 

Safemoon price looks dangerous.

Safemoon price displayed bullish sentiment last week after a bullish impulse led to a pennant-like consolidation. It was emphasized in the previous thesis not to be an early buyer as a potential sucker's rally could be underway. Just days later, the bears revealed their true power and completely invalidated the impulse by taking out the low yesterday at 0.00100. 

Safemoon price is now consolidating just below the previous invalidation level and will likely continue to drop further in the weeks to come. 

Safemoon/USD 1-Day Chart

Safemoon price still has the potential to rebound for some upside as what we may have seen from recent price action could fit under the criteria of an "X Wave" amongst Elliott Wave analysts. However, consolidation and price action will be needed before forecasting bullish sentiment. The bears have complete control of the trend and will likely send the Safemoon price into $0.00070 and below. Unfortunately, Safemoon investors should consider what their portfolio will look like between 20 and 30% below today's price of $0.00100 in the future.

One can expect Safemoon to go range bound and drop further unless the top of the previous consolidation at $0.00138 is touched. Should this happen, then a chance for Safemoon price to rally between 30% and 50% will be back on the table, with bulls targeting prices at $0.00150 and $0.00180, respectively.

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FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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