• SafeMoon price orchestrating an inverse head-and-shoulders pattern on the four-hour chart.
  • 50 four-hour simple moving average (SMA) has turned upwards for the first time since May 16.
  • May 11 declining trend line to offer resistance if SAFEMOON gains price traction.

SafeMoon price evolution over the past ten days has tested the patience of bullish SAFEMOON investors. The transition of the 50 four-hour SMA does establish a new level of support if the rookie digital asset commands some buying pressure. The upside is likely limited over the next few hours as SafeMoon price completes the right shoulder of the pattern. Still, probabilities are becoming stacked in favor of a bullish resolution.

SafeMoon price continues consolidation, looking more like other cryptos

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 has been in a range of $3 billion to almost $4 billion, ranking it around #200 in the cryptocurrency rankings. It is relatively inexpensive compared to most digital assets allowing investors to amass positions in the millions of SAFEMOON. 

The latest tally shows around 600 trillion SAFEMOON tokens in circulation, but developers can burn tokens manually with the logic that a smaller supply will drive down 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 attempts to replace the larger downtrend that began on May 11 with a firm bottom. The inverse head-and-shoulders pattern on the four-hour chart presents a high probability entry point for investors to initiate pilot buys with precise risk levels.

The right shoulder forms along the rising 50 four-hour SMA at $0.00000483, with the neckline at $0.00000495. Volume has declined throughout the pattern development, highlighting most of the selling pressure has exited.

The measured move target is $0.00000643, earning a 30% gain from the current position of the neckline. The target is slightly above the 38.2% Fibonacci retracement of the May decline at $0.00000620 and intersects with May’s declining trend line, establishing firm resistance.

A push above the declining trend line will quickly discover resistance at the 200 four-hour SMA at $0.00000671. Additional upside targets include the 50% retracement at $0.00000731 and the 61.8% retracement at $0.00000841

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 $0.00000400 would void the inverse head-and-shoulders pattern and leave SafeMoon price exposed to a test of the June 23 low at $0.00000285 and then the May 19 low at $0.00000261, yielding a 45% decline.

For now, SafeMoon price is defining a price history and personality, searching for the next wave of brave investors and media hype to transform it into a mainstay digital asset.

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