Safemoon price has unsafe liquidity levels, here’s what traders should be aware of
- Safemoon price has breached and retested the key $0.005000 level.
- The volume indicator remains unbiased as price continues within a descending parallel channel.
- Invalidation of the downtrend is a close above $0.0005000.
Safemoon price downtrend is justified but must be tended too as the invalidation level is still within close proximity.
Safemoon price in a tight spot
Safemoon price is following the technicals mentioned in previous outlooks. The Safemoon price saw an impressive 80% rally last month as one of the only cryptocurrencies to outperform and bring in net positive gains for investors. However, the rally was short-lived as the bears flexed their power above the breached parallel trend channel. It was mentioned that the controversial meme token would ultimately retest the $0.0005000 apex level before more uptrend gains could be forecasted.
Safemoon price has fully validated the previous thesis as the bears have managed to push the SFM price through the key apex barrier. Thursday’s market value fluctuates around $0.0004220. If market conditions persist, a “sweep the lows'' event could occur, targeting $0.0002500 for up to a 50% decrease in value. Traders looking to join the party south should keep the $0.0005000 level, ensuring that a closing candle does not occur above the zone.
SFM/USDT 4-Hour Chart
Invalidation of the bearish downtrend remains at $0.0005000. If a 4-hour candle closes above this level, the bulls could trigger a bullish frenzy with targets at $0.0005880, resulting in a 40% increase from the current Safemoon price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
