• SafeMoon price continues to trend within a descending triangle pattern, with the May 19 low defining the support line.
  • SAFEMOON 50-day simple moving average (SMA) aligns with the triangle’s resistance line, possibly frustrating an upside breakout.
  • Bollinger Band Width (BBW) now surpasses the compression in June, before the quick -50% drop.

SafeMoon price, similar to Shiba Inu, has presented several patterns with precise entry points during the bottoming process. Still, no sustainable rally has materialized, keeping SAFEMOON speculators on the defensive as the cryptocurrency flirts with a breakdown below the May 19 low. The result of the coiling price action has been the formation of a descending triangle, hinting at a downward bias for the SafeMoon price outlook.

SafeMoon price contraction leads to price expansion

A descending triangle is a bearish chart formation that commonly emerges as a continuation pattern during a downtrend, indicating heavy distribution. To compute the measured move for a descending triangle, take the height from the highest peak to the horizontal support line and add or subtract the amount to the breakout price (the point where price crosses the triangle’s support or resistance line) to get a target price.

Statistically, descending triangle patterns resolve to the downside 64% of the time, but an upward breakout is more reliable and powerful, with an average rise of 38% versus an average decline of 15%. 64% of upward breakouts reach the price target, while only 50% of the downward moves reach the price target. Moreover, the average  breakout distance from the base to the apex is 64%, but the most powerful occurs at 80%  

The measured move of the SAFEMOON descending triangle is 57%, establishing a downside price target of $0.00000111. To activate the pattern, SafeMoon price needs to record a daily close below the May 19 low of $0.00000261, something the digital asset failed to accomplish on June 22, July 19 and July 20. 

On the upside, the measured move SafeMoon price target is $0.00000540. To log a breakout to the upside, SAFEMOON needs to dislodge from the downward pressure exerted by the 21-day SMA at $0.00000304 and then chart a daily close above the descending triangle’s upper trend line at $0.00000346 and the closely tracking 50-day SMA at $0.00000357.

In terms of timing the potential 57% move, the notable contraction of SafeMoon price and as a result, the Bollinger Bands have put the BBW at the lowest reading since at least April, suggesting that a release from the descending triangle pattern is imminent. Amplifying the opportunity’s timeliness is that SAFEMOON is trading near 80% of the distance between the base and the apex.

SAFEMOON/USD daily chart

SAFEMOON/USD daily chart

In case of a reversal of the SAFEMOON trade, use the triangle’s other line (support or resistance) as a stop on a daily closing basis.

SafeMoon price is primed for a substantial move, with probabilities indicating it will be an upward resolution. As a result, SAFEMOON investors need to copy down the trade activation prices published above and supplement with a precise position size because this type of timely opportunity is rare.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin, Ethereum, and Ripple all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the SEC on Friday for an XRP exchange-traded fund. While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
IMX extends losses after Immutable faces SEC Wells Notice over token sales

IMX extends losses after Immutable faces SEC Wells Notice over token sales

IMX declined over 13% on Friday following Immutable's announcement that it received a Wells Notice from the SEC, presumably due to the private sale of its tokens in 2021.

More IMX News
Ethereum Price Forecast: ETH could retest $2,707 as investors resume accumulation

Ethereum Price Forecast: ETH could retest $2,707 as investors resume accumulation

Ethereum is down over 1% on Friday. A key technical support level suggests a bounce off $2,490 amid signs of investor accumulation across on-chain metrics.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP