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Safemoon price nears support as bulls await the right moment for the second breakout

  • Safemoon price is in the second week of price correction.
  • Safemoon price almost wholly reversed the bullish breakout from October. 
  • With support at $0.00000289, expect a bounce and a new breakout to come.

Safemoon (SAFEMOON) price is stuck in a sharp correction following the initial nose dive last week after breaking the high of June. Safemoon price sees bears pushing Safemoon price further downwards, almost but fully reversing the gains. Support is coming in at $0.00000289 and could potentially trigger a new breakout like three weeks ago.

Safemoon price sees bulls waiting a fitting moment for the next breakout

Safemoon price hit $0.00000700 at the end of October before the price reversed quite rapidly. This week proved to be no other, and the gains from October are almost entirely paired back. With that said, bulls will be gearing up for another breakout as the breakout proves that profits are there and bears are not that insignificant presence as since May and the whole summer throughout. Support at $0.00000289, coming from the beginning of October, looks promising and will undoubtedly see a slowdown or even a halt for the bearish candle next week, as bulls will undoubtedly want to buy in the opportunity again. 

Safemoon price will see bulls possibly going for the fade-in trade if $0.00000289 does not hold that firm enough, with the green ascending trend line and $0.00000117 as two close support elements. As bulls will have averaged in on these levels, expect a breakout towards the red descending trend line around $0.00000600. When Safemoon price sees bulls break that red trend line, expect more buyers to flock in, and price action could shoot higher towards $0.00001200, which would be a 300% return.

Safemoon/USD weekly chart

Safemoon/USD weekly chart

If Safemoon would fall back into its same regime as during past summer, expect a break below $0.00000289. As support turns into resistance, Safemoon price could stay muted below that level and get caught in a squeeze between the green ascending trend line and the resistance. Expect a prolonged squeeze with bulls, in the end, being able to break the $$0.00000289 resistance level and push the price back up towards $$0.00000700 for a retest and double top formation.



 

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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