Share:
  • SafeMoon price breaks May 19 low, triggers descending triangle and proceeds to fall 27%.
  • SAFEMOON daily Relative Strength Index (RSI) did mark an oversold condition at the August 2 low, but no rebound has materialized, supporting forecasts for lower prices.
  • SafeMoon waiting for the beta launch of the Android-specific mobile wallet on August 7.

SafeMoon price break down from a descending triangle pattern on July 28 finally resolved a period of trendless, coiling action. The breakdown was preceded by a notable compression in the Bollinger Bands towards the latter part of July and an inability to gain traction above the robust 20-day simple moving average (SMA). As a result, SAFEMOON dropped below the May 19 low and fell 27%. The sideways action over the last three days is just a pause in a larger decline, even as SafeMoon aims to launch the beta version of its Android mobile wallet tomorrow.

SafeMoon developers excited about the launch, investors not so much

SafeMoon has been pursuing a program of innovation that would promote the cryptocurrency from a target of fierce speculation, as witnessed earlier this year, into a viable alternative with real-world use. Part of the program is the upcoming launch of the beta version of its Android mobile wallet, set for tomorrow, August 7. It marks the first mobile-specific product from SafeMoon developers.

It is an interesting inflection point and an exciting moment for SafeMoon developers, but market speculators have not responded with the same excitement. This week, in the run-up to the launch, SafeMoon price is down -3.5%, suggesting that the SAFEMOON speculators are not convinced that the project has reached the utility threshold.

SafeMoon price punishes the reckless investors

At the August 2 low of $0.00000190, SafeMoon price was down 27% from the descending triangle breakdown and 39% from the July 24 high of $0.00000310, pushing SAFEMOON outside the Bollinger Bands and pressing the daily RSI into an oversold condition. 

The $0.00000190 low is still far from the measured move price target of $0.00000111 for the descending triangle, presenting a challenging outlook for SAFEMOON investors. A drop to the price target equates to a 49% loss from the current price.

More importantly, the consolidation over the last three days, including a doji candlestick pattern yesterday, is not the beginning of a bottom. Based on the price structure, the sideways SafeMoon price action is a pause in a more significant decline for SAFEMOON.

To achieve the measured move price target of $0.00000190, SafeMoon price will need to overcome the support embedded in the April 21 low of $0.00000150. Otherwise, SAFEMOON is free to test the target.

If SafeMoon price breaks through the measured move price target, it may fall to the April descending trend line, currently at $0.00000041, representing an 81% decline from the current price.

Fundamental to the continuation of the decline is a surge in volume accompanying the selling. So far, SAFEMOON volume has remained muted, showing no rush for the exits.

SAFEMOON/USD daily chart

SAFEMOON/USD daily chart

A daily SafeMoon price close above a trifecta of resistance, framed by the May 19 low of $0.00000261, the 20-day SMA at $0.00000260 and the upper trend line of the descending triangle, also at $0.00000260, would alert SAFEMOON investors to a possible change in the bearish forecast. 

Overall, the negative deviation of SafeMoon price from the bullish trend in the cryptocurrency complex since July 21, coupled with the weak price action heading into the launch of the Android-based wallet, confirms that the SAFEMOON outlook should be tilted bearish and recommends not being reckless with investment decisions.

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

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Could Aptos price buckle under pressure and crash 55%?

Could Aptos price buckle under pressure and crash 55%?

Aptos (APT) price is pushing on the red descending trend line to trigger a breakout trade with a rally toward $20.36. The move is an outlier as the downtrend since the beginning of February has not finished one day in the green. 

More Cryptocurrencies News

Cardano price looks overpriced, 17% nosedive likely for ADA

Cardano price looks overpriced, 17% nosedive likely for ADA

Cardano (ADA) traders need to face reality as markets are pivoting back toward a sticky inflation story, which contradicts the Goldilocks story that was the driving force in January.

More Cardano News

Luna Classic gears up for recovery after Binance support and latest upgrade

Luna Classic gears up for recovery after Binance support and latest upgrade

Terra Classic (LUNC) formerly known as LUNA is upgrading from its v1.0.4 version to v1.0.5. The world’s largest exchange by volume, Binance has announced support for Luna Classic, fueling a bullish narrative among LUNC holders. 

More Luna Classic News

XRP Price Prediction: Will Powell propel Ripple or dampen the 2023 bull rally?

XRP Price Prediction: Will Powell propel Ripple or dampen the 2023 bull rally?

Ripple (XRP) price sees traders front-running the main event for today with Federal Reserve Chair Jerome Powell taking the stage later this evening at 17:00 GMT in Washington.

More Ripple News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP