SafeMoon price looks to double as it enters high probability reversal zone
- SafeMoon price will likely continue its 46% descent as it approaches a crucial support floor.
- A dip into the high probability reversal zone, extending from $0.00000215 to $0.00000302 could trigger a massive explosive uptrend.
- A breakdown of the $0.00000109 support level will invalidate the bullish thesis for SAFEMOON.
SafeMoon price is taking a break from its steady uptrend as it retraces, breaking crucial support barriers. That said, it is not beyond revival. In fact, SAFEMOON is approaching a high probability reversal zone that is likely to end the downtrend and kick-start a new rally.
SafeMoon price to catapult higher
SafeMoon price has dropped roughly 47% since October 29 to where it currently trades at $0.00000349. The downswing comes after SAFEMOON rallied by a whopping 461% between September 28 and October 29.
The altcoin suffered a fatal downswing after its all-time high in May, but the recent run-up is just the beginning. As mentioned in previous articles, SafeMoon price is coming full circle and aims to retest the $0.00000915 resistance barrier.
So far, it has only tagged the midpoint of this range and is currently undergoing a brief correction. However, investors can expect SafeMoon price to continue its uptrend due to two reasons:
- SAFEMOON is approaching a high probability reversal zone.
- The Relative Strength Index (RSI) is close to hitting the oversold zone.
The high probability reversal zone extends from $0.00000215 to $0.00000302. A dip into this area will put SAFEMOON price at a great discount and trigger a buying frenzy among sidelined investors. Consequently, catalyzing an up move that shatters the $0.00000377, $0.00000470 and $0.00000558 resistance barriers before it makes a run at the October 29 swing high at $0.00000615.
Similar price action occurred in May when SafeMoon price dived into a high probability reversal zone, extending from $0.00000239 to $0.00000388. The downswing was succeeded by a sudden spike in buying pressure that propelled the altcoin by 62%.
While the initial reason has to do more with the SafeMoon price action, the second reason is a result of the recent downswing.
The 47% price decline seen since October 29 caused the RSI to dip from largely overbought at 94 to where it currently hovers at 42. Still, the RSI seems to have more room to go down until it hits oversold territory, which suggests SafeMoon price can also continue to decline.
Using the RSI as a standalone indicator can be inaccurate but coupled with the high probability reversal zone, it indicates that SafeMoon price is in for a treat.
As for the upside targets, $0.00000615 is an initial target for SafeMoon price, but the altcoin is likely to breach through this zone and reach for the crucial $0.00000774 or $0.00000915 barriers. This move would constitute 200% and 250% run-ups from the 70.5% Fibonacci retracement level at $0.00000259.
SAFEMOON/USDT 1-day chart
On the other hand, if Safemoon price fails to bounce off the high probability reversal zone, ranging from $0.00000215 to $0.00000302, it will signal a dearth of buying pressure. In such a case, SAFEMOOON price will revisit the range low at $0.00000109. A swing low below this level will invalidate the bullish thesis and propel SAFEMOON to all-time lows.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
