Safemoon price hints at a 40% drop amidst Rug-pull allegations

Safemoon price decline is getting sharper as days progress.
The relative Strength Index is severely oversold.
Invalidation of the bearish scenario is a close above $0.0006391

Safemoon price is experiencing backlash from community members, contributing to the current decline.

Safemoon price sell-off

Safemoon price displays disappointing sentiment amongst long-term investors, reflected in the current price action. Last month popular Youtube host Coffeezilla interviewed the Safemoon developers, questioning the integrity and transparency of the project. The Safemoon team has been under scrutiny for marketing contradicting liquidity pool protocols, which host Cofeezilla calls "a billion dollar fraud." The interview has garnered 1.2 million views with several resentful comments from community members.

Safemoon price reflects their recently scathed public image within the price action. The Relative Strength Index appears extremely oversold, showing no signs of a reasonable entry. Secondly, the slope of the current decline is progressively going vertical, hinting at more severe drops in the future. The safemoon currently trades at $0.0004372. If market conditions continue, an additional drop of equal value to the sell-off experienced since May 1st could send the Safemoon price another 30% lower to $0.0003200. It is worth noting that the bears are producing larger bearish candle sticks as the downslide continues which adds further bearish confluence.

SFM/USDT 3-Day Chart

An early invalidation of the bearish downtrend could be $0.0006391. If the bulls can establish price action in this zone, a new counter-trend rally could get triggered with targets at $0.0013130, resulting in a 250% increase from the current Sademoon price.

Coffeezilla : I UNCOVERED A BILLION DOLLAR FRAUD

Disclaimer: FXStreet has reached out to Coffeezilla to get an official statement about the recent developments, but it has yet to hear back.

Share: Cryptos feed

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.

Join Telegram