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Safemoon price under pressure as profit-taking persists

  • Safemoon price exploded by almost 300% at the end of October.
  • Safemoon price has been on a downward slope since then, under pressure by quite some profit-taking.
  • Price action in Safemoon is nearing two essential support elements that could start the next bullish phase.

Safemoon (SAFEMOON) price saw favor from bulls in October, but sentiment shifted a little bit in November, and now the uptrend starts to look tired,  with the October rally already pared back half. After Safemoon price hit $0.00000700, bears  pushed Safemoon price down towards $0.00000380, where it is currently trading, near two technical elements that might see bulls re-emerge on the scene and kickstart the next phase in the uptrend. 

Safemoon price sees sell-side volume fading, bulls ready to take over

Safemoon price has been under quite some pressure in November after hitting new highs in June. Since then, Safemoon price has been stuck in a downward trajectory, marked by quite a lot of volume on the sell-side. After hitting $0.00000700, the price is now averaging $0.00000398.

The fact that bulls are not really present is because there are no good entry levels at hand in Safemoon. With the red descending trend line very well respected, bulls do not want to burn their hands on entering preemptively. However, Safemoon price holds a solid entry point at $0.00000352 with a historical triple top and the 30-day Simple Moving Average (SMA) coming in below.  

SAFEMOON/USD daily chart

SAFEMOON/USD daily chart

Safemoon price is getting squeezed further with lower highs and a flat bottom at $0.00000380. Expect the squeeze to continue and for bears to cash in on the break. This would be a golden opportunity for bulls to go long again, and Safemoon price should see volume shifting from the sell-side to the buy-side. 

If $0.00000352 and the 30-day SMA do not hold, expect bears to sit on their hands and to not offer buyers any opportunity to get in. This would pave the way for a nose dive towards the green ascending trend line at the bottom, around $0.00000150, where bulls should be interested in picking up Safemoon at a very attractive discount.


 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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