Safemoon Price Prediction: A Stairway to Hell

Safemoon price has been descending in turbulent fashion throughout the summer. A breach of the swing low established in May could catalyze a sharp decline.

Safemoon price shows concern

Safemoon price has been a lagging cryptocurrency throughout the summer. Since the first day of Summer on June 21, the Safemoon price has lost 54% of its market value. Despite the percentage, the decline has not come with ease as the price has stair-stepped its way south, causing erratic and unpredictable pullbacks along the way.

Safemoon price currently auctions at $0.0002950, just above a descending parallel channel which has continued to provide support throughout the decline. This is a very peculiar signal that prompts a reasonable question. What will Safemoon do next?

SFM USDT 12-Hour Chart

The Volume Profile Indicator shows an uptick in transactions amidst the decline since September. Furthermore, the bears have lost support from the 8-day exponential moving average this week. Combining these factors, this thesis leans toward a bearish outcome. 

The current Safemoon price hovers 8% above a swing low established in May at $0.0002716. The stair-step decline may be enticing bullish traders to take a gamble by placing invalidation of their positions under the low. This thesis argues against doing just that. A breach of the low is likely to occur if market conditions persist. A breach of the springtime swing low could catalyze a 70% drop using a triangle projection method since the swing low is a leg within the triangle. 

In the following video, our analysts deep dive into the price action of Safemoon, analyzing key levels of interest in the market. -FXStreet Team