- SafeMoon price broke out of its falling wedge consolidation on August 6.
- A retest of the setup’s upper trend line might follow an upswing to $0.00000378.
- If SAFEMOON price breaks below $0.00000157, it will invalidate the bullish thesis.
SafeMoon price was on a steady downtrend since May 21, forming a falling wedge pattern. While this setup is bullish, investors can expect the recent breakout to tag its theoretical target.
SafeMoon price awaits a resurgence of buyers
SafeMoon price formed a series of lower lows after setting up an all-time high at $0.00000972 on May 12. However, the price action from May 20 set up three lower highs and four lower lows. Connecting these swing points using trend lines results in a falling wedge pattern.
This technical formation forecasts a 77% upswing, obtained by measuring the distance between the first swing high and the low and adding it to the breakout point.
Based on these projections and the recent breakout on August 6, SafeMoon price should head to $0.00000378. However, things are not going according to the plan as the altcoin failed to sustain the highs formed during the initial breakout and is currently retesting the upper trend line of the falling wedge.
Considering the general trend of the cryptocurrency market is bullish, investors can expect SafeMoon price to follow through and retest intermediate resistance levels at $0.00000264, $0.00000316 and $0.00000346 before taking a jab at the theoretical target at $0.00000378.
SAFEMOON/USDT 12-hour chart
While the uptrend scenario seems plausible, market participants should note that a correction in Bitcoin price might also translate into a retracement in SafeMoon price. So long as SAFEMOON remains above the $0.000000157 support level, the optimistic outlook will stay safe.
However, a decisive 12-hour candlestick close below the said barrier and an inability of the buyers to reclaim it quickly will invalidate the bullish thesis and potentially trigger further downswings.
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