SafeMoon price on track to trigger its next money-doubling rally
- Safemoon price is heading into the deep discount phase, extending from $0.000511 to $0.000636.
- A bounce off this area will like result in a 140% upswing to $0.00136 to create a higher high.
- If SAFEMOON produces a daily candlestick close below $0.000356 the bullish thesis will face invalidation.
Safemoon price has been in a correction mode for more than a week and is approaching a reversal zone. While this downswing will alleviate the sell-side pressure, it will also allow sidelined buyers to jump in and trigger another leg-up.
Safemoon price brews
Safemoon price has dropped roughly 38% since the May 26 swing high at $0.00195 and nearly 77% from its all-time high in January. Regardless, the recent run-up pushed the altcoin up by 197% between April 18 and May 26.
After this impressive move, exhaustion and profit-taking took over, leading to a retracement that has now breached $0.000725, aka the midpoint of the $0.00356 to $0.00109 range. A continuation of this trend will likely push SafeMoon price into a deep discount mode, extending from $0.000511 to $0.000636.
As mentioned above, this area will likely attract patient investors and sidelined buyers, triggering the next run-up. In such a case, SafeMoon price is likely going to form a base around $0.00109 or overcome it to set a higher high at $0.00136. A revisit to the latter level will constitute a 140% gain.
SAFEMOON/USDT 1-day chart
A sudden sell-off in Bitcoin price could put a dent in the picture-perfect outlook for SafeMoon price. Additionally, a crash in BTC could trigger a sell-off in altcoins including SAFEMOON. If this narrative pushes Safemoon price to produce a daily candlestick close below the range low at $0.000356, it will create a lower low and invalidate the bullish thesis.
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.
