- SafeMoon price has crashed 85% since January 5 and is currently coiling up.
- While the technicals present a bullish signal, investors need to exercise caution.
- A daily candlestick close above the $0.0009 resistance barrier will invalidate the bearish thesis.
SafeMoon price has shown no restraint in heading south since 2022. This downswing has caused the altcoin to lose the majority of its value, but one silver lining is that it may now be so oversold, Safemoon price could be ready to trigger a minor rally.
SafeMoon price at the precipice
SafeMoon price has sliced through the $0.00096 support level and crashed 65% to tag the new barrier at $0.000357. While the downtrend since January 2022 may have become familiar to holders, there could be a small ray of hope for investors betting on Safemoon price recovering.
The SafeMoon price has formed lower lows since February while the Relative Strength Index (RSI) has set up higher lows. This technical formation is termed a bullish divergence and often results in a spike in the underlying asset’s value.
It is an interesting contrarian outlook considering the bearish narrative, but it is also unlikely. However, if Bitcoin price makes a quick run-up, that could help improve the odds, and increase the chance SafeMoon price will do the same. In such a case, the altcoin could trigger a 103% upswing to retest the immediate hurdle at $0.000962.
SAFFEMOON/USDT 1-day chart
While the crypto space is expecting a relief rally and is partially bullish in the short-term, a sudden spike in selling pressure could spell trouble for SAFEMOON.
In such a case, a daily candlestick close above the $0.0009 resistance barrier will be required to invalidate the bearish thesis for SafeMoon price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin punches new all-time high above $111,800 following brief shock from weak 20-year bond auction
Bitcoin (BTC) hit a new all-time high above $111,800 on Thursday, rebounding from a brief dip to $106,000. The surge followed weak demand in the US Treasury’s 20-year bond auction, which pushed yields above 5%, potentially shifting investor interest toward alternative assets like Bitcoin.
VeChain partners with Wanchain to launch cross-chain bridges to over 40 blockchains
VeChain (VET) announced a strategic partnership with Wanchain on Wednesday to integrate cross-chain bridges connecting its VeChainThor blockchain to more than 40 other networks, including major chains like Bitcoin (BTC) and Ethereum (ETH).
Ethereum Price Forecast: ETH sees rising buying pressure as it recovers the $2,500 mark
Ethereum (ETH) saw a 2% gain in the early Asian session on Thursday, recovering the $2,500 key level after whales stepped on the gas with their buying pressure. Ethereum's supply on exchanges extended its decline to 18.73 million ETH on Wednesday.
WLD rallies as Worldcoin Foundation raises $135 million for network expansion
WLD saw a 7% gain on Wednesday following an announcement from the World Foundation that it raised $135 million from token sales to expand its World network in the US and other regions.
Bitcoin: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand
Bitcoin (BTC) price stabilizes at around $103,000 when writing on Friday, after facing multiple rejections at the key $105,000 resistance level throughout the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.