Jonathan Morgan
Independent Analyst
- SafeMoon price bounces off of critical support, then produces a fake-out higher to return to support.
- Final support zones at risk of failure.
- Deeper retracements are likely if bullish momentum fails to return.
SafeMoon price struggles to establish a clear floor after pulling back nearly 50% from the all-time highs it established in late October. Last Friday showed some evidence that a continuation move higher may occur, but that quickly fizzled out.
SafeMoon must hold above $0.0000040 or else it will collapse
SafeMoon price may dip below the current $0.0000040 support zone. The weekly Tenkan-Sen (thick blue horizontal ray) at $0.0000041 and the 50% Fibonacci retracement at $0.0000039 have acted as the primary support level. Last Friday (November 5th), it appeared as if SafeMoon might resume the bullish momentum it recently had. Instead, the weekend triggered some intense selling pressure and a quick retest of $0.0000040 as support. That support now looks like it could fail. The next level of support for SafeMoon price below the 50% Fibonacci retracement is the 61.8% Fibonacci retracement at $0.0000035.
The slope of the Relative Strength Index warns of a test of the first oversold condition in a bull market at 50. Additionally, traders will want to observe how the Composite Index behaves when it approaches its moving averages. Any rejection of a bullish crossover of the Composite Index and its moving averages could signal that the current SafeMoon price support is likely to fail.
SafeMoon/USDT Daily Ichimoku Chart
The bearish bias could be invalidated if SafeMoon price can return to a close above the Kijun-Sen and Tenkan-Sen. This would mean buyers need to push SafeMoon to a close at or above $0.0000045. From there, SafeMoon is likely to retest the all-time highs at $0.0000070.
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