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SafeMoon price forms bearish triangle, ready to dip lower

  • SafeMoon price is continuing its downtrend alongside a bearish top line.
  • SafeMoon bears are dictating price action and are pushing price against support.
  • Expect SafeMoon price to break lower with a return to $0.00000100.

SafeMoon (SAFEMOON) price is under siege by further bearish price action as Safemoon price is squeezed against the temporary floor at $0.00000289. As bears continue selling alongside the descending red top line, expect momentum to prove too big for bulls to defend and to see a break lower through the floor. Expect further downside continuation toward $0.00000100.

Safemoon price under siege of bears with no bull retaliation anytime soon

Safemoon price is again in a downtrend with price action on the back foot since November. With already 45% losses booked since SafeMoon hit $0.00000700, a break below the current support level would hold another 40% of devaluation against the dollar. The bearish move in SafeMoon is because of the bears shorting SafeMoon and because the dollar index has hit a new year’s high as the greenback appreciated 3% in November. 

SafeMoon price thus has in its currency pair against the dollar two elements pleading against any possible uptick. Expect the bearish triangle, being formed by the floor at $0.00000100 and the red descending trend line, to fall in favor of the bears with a lower break that could quickly accelerate toward $0.00000200 in a first phase. In the last downtrend cycle, bears will go for the $0.00000100 level that has held support since April and got tested for its strength in August and September.

SAFEMOON/USD daily chart

SAFEMOON/USD daily chart

With that said, expect bulls to stand ready at $0.00000100 to pick up SafeMoon price at a very attractive level and discount. The next level of support lies very close within reach at $0.00000050, the historical low for Safemoon. With those two levels very tight near each other, expect some significant spikes in buy-side volume and to see a bullish breakout quite quickly toward $0.00000289.


 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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