SafeMoon price rebounds as investors digest volatile trading week
- SafeMoon price rebounded yesterday after almost hitting lows of $0.001602.
- Today's upbeat opening looks set to help lift sentiment in SafeMoon.
- Expect a break of yesterday’s high, and aided by a rebound in stocks for SafeMoon to launch towards $0.001759.
SafeMoon (SAFEMOON) price action has been on the cusp of breaking the December 22 low but saw signs of relief yesterday evening as Moscow appeared to keep its word about not invading and investors started to look beyond the very volatile week. Additionally, the FED minutes did not allude to any further hawkish comments or tightening, making the expected 25 basis point rate hike in March in no way shocking to markets. With these elements, traders are prepositioning for more upside.
SafeMoon price action sees investors prepositioning for more gains to come
SafeMoon bulls will, in a first phase, look to target the high of yesterday at $0.001662. As the close of yesterday and the opening of this morning are so close together, expect this to be easily achieved as tailwinds from the stock market help lift sentiment. The next big hurdle on the graph will be the low of February 02 at $0.001691, which was also the February 14 low and acted as a bounce-off to try and break $0.001759, but failed back then.
Once above $0.001691, expect to see a repetition of a similar pattern as at the beginning of February with yet again $0.001759 as the target to get above. Bulls have been unable to hold a price opening above that level, let alone a daily close. But as talks are still underway and a diplomatic solution in Ukraine is still possible, expect a pop to the upside once white smoke gives the signal with a possible daily close above $0.001759 by the weekend or next week.
SafeMoon/USD daily chart
The situation on both the rates markets and Ukraine is still very much precarious. Any hawkish comments could easily see markets back to pricing in a 50 basis point rate hike by the FED in March, or headlines on reemerging violence in the Donbass region could set back peace talks with Russia and make investors worry again. SafeMoon price would quickly react to this with a push back towards $0.001602 and a possible break or breach of the support. That would open the door for a sharp correction towards $0.001500.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
