• SafeMoon price is nearing the apex of a descending triangle pattern, suggesting a pattern resolution soon.
  • Bollinger Band Width (BBW) has contracted further, also indicating that a notable move is immediate.
  • SAFEMOON does not show a weekly return of note since the end of April, confirming the recent challenges on the long side.

Safemoon price has been coiling within a descending triangle pattern since the May crash, highlighted by no sustainable rallies and continuous support along the May 19 low of $0.00000261. The downward trajectory has kept SAFEMOON investors on the defensive. However, in the context of tightening price traction enforced by the triangle pattern and emphasized by the notable contraction of the Bollinger Bands, combined with a nearing apex, SafeMoon price is poised for a substantive move soon, either way.

SafeMoon price has impressive potential yet to be developed

Based on the current SAFEMOON descending triangle pattern, the measured move is 57%, projecting a downside price target of $0.00000111. To activate the pattern, SafeMoon price needs to log a daily close below the May 19 low of $0.00000261, something the digital token failed to achieve on June 22, July 19, July 20, and so far during today's test.

The upside measured move price target is $0.000000499. A breakout is recorded when SAFEMOON can best the 20-day simple moving average (SMA) at $0.00000295 and then chart a daily close above the triangle’s upper resistance line at $0.00000318. The ideal scenario is for SafeMoon price to close the breakout day above the 50-day SMA at $0.00000349, enabling the cryptocurrency to rally unfettered to the measured move target and a test of the June 16 high, at $0.00000500.

Regarding the timing of the 57% move, the contracting SafeMoon price and as a result, the Bollinger Bands have pressed the BBW to the lowest reading since April, proposing an imminent release from the descending triangle pattern. Strengthening the timeliness of the scenario is that SAFEMOON now is beyond 80% of the distance between the triangle’s base and apex. Any further coiling to the apex will diminish the robustness of the eventual breakout.

SAFEMOON/USD daily chart

SAFEMOON/USD daily chart

In the case of a throwback, use the SAFEMOON triangle’s horizontal support line as a stop on a daily closing basis. Alternatively, use the triangle’s resistance line as a stop on a daily closing basis for pullbacks.  

The final SafeMoon price direction is unknown, but the degree of price contraction points to a significant move following the triangle pattern’s resolution. Historical probabilities do indicate it will be to the downside. Nevertheless, SAFEMOON market operators should be prepared for both scenarios with precise, programmed alerts to maximize a quick burst higher or lower.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Ethereum attempts recovery following first rate cut in four years

Ethereum attempts recovery following first rate cut in four years

Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.

More Ethereum News
Bitcoin offers diversity for traditional investors: BlackRock

Bitcoin offers diversity for traditional investors: BlackRock

Bitcoin (BTC) is trading above $60,000 on Wednesday following the release of BlackRock's latest white paper, which addresses some of the top crypto assets' unique advantages to investors compared to traditional asset classes.

More Bitcoin News
XRP pulls back 4% even as Ripple releases details of stablecoin RLUSD

XRP pulls back 4% even as Ripple releases details of stablecoin RLUSD

Ripple (XRP) shared details of its stablecoin project Ripple USD (RUSD) in a blog published on Tuesday. The cross-border payment remittance firm discusses relevant legislation and plans to support the digital asset economy through RLUSD. 

More Ripple News
Bitcoin traders keep powder dry ahead of Fed decision on interest rates

Bitcoin traders keep powder dry ahead of Fed decision on interest rates

Bitcoin retraces slightly, trading above $59,000 on Wednesday, as crypto markets brace for the upcoming interest-rate decision by the US Federal Reserve, which is expected to lower interest rates for the first time in more than four years.

More Bitcoin News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP