• SafeMoon price continues to slide further south, trading in exceptionally bearish conditions.
  • An upcoming Ichimoku time cycle and bullish reversal pattern could change the current trend.
  • Downside pressure still likely as price action remains weighted heavily to the bearish side of the market.

SafeMoon price is currently trading below the Ichimoku Cloud and continuing its slide south after repeated Ideal Bearish Ichimoku Breakout confirmations. It remains above the most recent swing lows at $0.00097 made on February 24, 2022, but continuation lower is likely unless buyers step in to support SafeMoon.

SafeMoon price action, while decidedly bearish in the near term, presents opportunities for bulls and bears.

SafeMoon price has an early and aggressive long opportunity present upon a successful 4-hour close above the falling wedge pattern, the Tenkan-Sen and the Kijun-Sen. The hypothetical long entry is a buy stop order at $0.00114, a stop loss at $0.00108, and a profit target at $0.00145. The trade represents a 5.79:1 reward for the risk setup. The entry is only valid on the close of a 4-hour candlestick.

The long entry idea for SafeMoon price is an aggressive entry because it occurs below the Ichimoku Cloud. However, due to the proximity of a Kumo Twist and a very thin Ichimoku Cloud, momentum is likely to carry SFM higher if the entry is confirmed.

The hypothetical long idea is invalidated if the short entry below is triggered first.

SFM/USDT 4-hour Ichimoku Kinko Hyo Chart

On the short side of the market – and the most probable to play out – there is a theoretical short trade for SafeMoon price with a sell stop order at $0.00105, a stop loss at $0.00112, and a profit target at $0.000071. The short idea represents 3.3:1 rewards for the risk.

The theoretical short entry confirms two bearish events. The first is a close below the falling wedge. The second is a close below the prior swing low close at $0.00104.

 

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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