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SafeMoon price is on its way back to $0.0012 as support weakens

  • SafeMoon price on the backfoot after a negative weekend.
  • Price set to drop to the low of last week at $0.00120000.
  • Expect to see a possible further downturn, as a test of $0.001000000 is on the cards.

SafeMoon price action is in consolidation mode again after price  punched below the low of last week over the weekend and now looks set to square the low of March. As news keeps developing in Russia and Ukraine, it is clear that SafeMoon investors are merely riding the waves created by this event with no real clear sense of direction. Expect more whipsawing price action as the Relative Strength Index (RSI) remains subdued to the downside near oversold.

SafeMoon price poised for a bearish outlook

SafeMoon price action has shredded all the profits accrued from the previous trading week in just one weekend as several sources confirmed that any cease-fires had failed. With new talks underway this afternoon, the message from Russia remains bearish given their demand for full compliance from Ukraine. As this situation remains very binary, it looks like SafeMoon still has more room to dip to the downside.

Expect to see a test of $0.001223648, which is the 23.6% Fibonacci level, and in the process,  a new two week low. With the RSI very close to being oversold, although the downside looks limited, the pressure from bears and short-sellers is just so immense to let up as liquidity starts to tighten little by little. Should peace talks fail again this afternoon, and the hostile rhetoric grow bigger again, expect to see a further drop towards $0.000989810, breaking below $0.001000000, and a bounce off the 38.2% Fibonacci level. 

SAFEMOON/USD daily chart

SAFEMOON/USD daily chart

Should a breakthrough be brokered between Russia and Ukraine, however, expect to see a sharp rally across the board in all cryptocurrencies. For SafeMoon that would mean a pop above $0.001400000 for a new March high. Another leg higher could target $0.001601634, although the 200-day Simple Moving Average at $0.001525539 could trigger too much profit-taking for the rally to go much further.


 

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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