• SafeMoon price confronted by the resistance offered by May’s descending trend line.
  • SAFEMOON 50 four-hour simple moving average (SMA) and minor trend line from May 25 reinforce the drift lower.
  • A close above $0.00000447 directs investors’ attention to upside trading opportunities.

SafeMoon price indecision and resulting drift lower have not revealed many clues as to direction or timing. The presence of converging trend lines and the tactically important 50 four-hour SMA puts the pressure on SAFEMOON to prove itself amidst a cryptocurrency complex environment defined by agitation and uncertainty. As a result, the short-term SafeMoon price outlook is neutral until a conclusive release from the price churn.

SafeMoon price respects technical parameters

Over the past few weeks, blockchain security firms, Hashex and Pera Finance have revealed vulnerabilities in the SafeMoon digital infrastructure that could potentially lead to third-party intrusions and cost investors millions.

SafeMoon has acknowledged the discoveries, and they state a hard fork in the future is needed to solve the problems. Nevertheless, the news is a fresh warning sign to retail investors that they must seek to understand the underlying technology of the new cryptocurrency projects before allocating capital to the uber-hyped tokens.

Despite the unfavorable news, SafeMoon price has continued the slow drift lower rather than plunging. SAFEMOON has tried to break the lock of the descending channel, most recently on June 9, but May’s declining trend line repelled it. As a result, the digital asset soon slumped back below the channel’s upper boundary and the 50 four-hour SMA at $0.00000405.

At this point, it is not sufficient for SafeMoon price to close above the 50 four-hour SMA; it must close above the June high of $0.00000447 to confirm a trend change. Beyond the June high, SAFEMOON is unfettered to achieve a rally to the 200 four-hour SMA at $0.00000591, delivering a 38% return to investors. 

A rediscovery of FOMO for rookie altcoins may facilitate a continuation of the SafeMoon price rally to the 50% retracement at $0.00000731. Still, the level will be a challenge owing to the price peaks from May 19-21.

SAFEMOON/USD 4-hour chart

SAFEMOON/USD 4-hour chart

The channel’s lower boundary aligns with the May 19 low of $0.00000261, providing concise support for any SafeMoon price weakness moving forward. Still, it represents a 30% drop from the current price, so market operators need to be cognizant of the risk inherent in buying SAFEMOON at current price levels.

Investing in the cryptocurrency market already carries significant risk. Hence, SAFEMOON investors need to be informed of the underlying technology of their investment target before allocating funds and accept that FOMO can be instrumental in shaking explicit resistance and delivering superior SafeMoon price returns. 

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.

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