- SafeMoon price attempt at a cup completion cheat pattern fails as rookie cryptocurrency retests the May 23 low of $0.00000285.
- Volume profile shows no jump, suggesting that pullback was due to a lack of buying rather than increased selling.
- SAFEMOON lowest daily close since May 19 is $0.00000315, putting today’s focus on the daily close with price currently at $0.00000314.
SafeMoon price has been entangled in a bottoming process since May 19, confusing investors with various buy signals that eventually failed or patterns that never triggered. Just a few days ago, it appeared that SAFEMOON was defining a cup completion cheat pattern that offered a timely opportunity to seize a 20% profit. The pattern failed on the weekend, declining below $0.00000331, now leaving the digital asset vulnerable to a new correction low.
SafeMoon price still caught in the May low’s sphere of influence
SafeMoon price rallied almost 80% from the June 22 low of $0.00000230 to the June 29 high of $0.00000410, surpassing the 50 two-hour simple moving average (SMA) at $0.00000324 and, more importantly, logging the first overbought condition on the two-hour Relative Strength Index (RSI) since early May. The magnitude of the SAFEMOON rally and the momentum indicated an impulsive bid and a newfound decisiveness.
The SAFEMOON rally culminated with multiple tests of the 200 two-hour SMA while supported by the 50 two-hour SMA. A bearish momentum divergence eventually undermined it as the two-hour RSI did not confirm the June 29 price high. Nevertheless, SafeMoon price seemed to be readying to form the handle of a cup completion cheat pattern with a trigger price of $0.00000410.
As noted on the chart, the bullish interpretation did not materialize. SafeMoon price dropped below $0.00000331 and tested the May 23 low of $0.00000285 yesterday before an oversold reading on the two-hour RSI led to a rebound.
With another fakeout on the record, SafeMoon price is now being dictated by the May 23 low’s sphere of influence again. Two moving averages are pushing lower, and a declining trend line from June 18 is also pressing down on SAFEMOON.
To rediscover a bullish narrative, SafeMoon price needs to rally above the 50 two-hour SMA at $0.00000347, 200 two-hour SMA at $0.00000354 and June’s declining trend line currently at $0.00000368. It would constitute a SAFEMOON rally of over 15% from the current price. An entirely possible scenario, but not in the context of renewed selling in the cryptocurrency complex.
SafeMoon price is in a vulnerable position at the current level, with price being pressed by moving averages and a trend line. A test of the June 22 low of $0.00000230 is a potential scenario as long as SAFEMOON does remain in this price range, representing a decline of 30% from the current price.
Until SafeMoon price clears the resistance articulated above, SAFEMOON will be influenced by the May lows and the uneven price action in the cryptocurrency complex, forcing investors in the digital token to be patient.
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