- SafeMoon price dropped roughly 20% between July 19 and July 20, slicing through the range low at $0.00000273.
- Despite the crash, the recent double bottom formation suggests an upswing is likely.
- A breakdown of the $0.00000216 support level might trigger an 8% sell-off to $0.00000198.
SafeMoon price is experiencing a bottom formation as SAFEMOON approaches a crucial support level twice over the past week. If a bounce from this barrier evolves, it will indicate a double bottom reversal in play.
SafeMoon price awaits a trigger
SafeMoon price crashed 20% between July 19 and July 20 to $0.00000273. However, the run-up that stemmed here failed to create a higher high. Therefore, SAFEMOON is heading back to the $0.00000216 support level, indicating the potential formation of a double bottom.
In some cases, the downtrend could stop midway, creating a higher low that is also leaning bullish.
Regardless, SafeMoon price is likely to rally at least 23% to retest the range low at $0.00000273. A decisive 4-hour candlestick close above this level will indicate the affinity of buyers to push the altcoin higher.
In such a case, SAFEMOON price might extend the rally to tag $0.00000295.
SAFEMOON/USDT 4-hour chart
While this move seems reasonable, investors should note that a higher low has less chance of progressing unless it produces a higher high to match the bullish momentum. In the case that it does not, market participants can expect a retest of $0.00000216, and in a bearish case, a breakdown of this barrier.
This move would invalidate the bullish thesis and potentially trigger an 8% downswing to $0.00000198.
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