What to watch for in SafeMoon before going into the weekend

SafeMoon (SFM) price has seen bulls attempting to break the bearish cap that has been present since the end of May. It looks like a second attempt is set to fail as price action has been pulling back quite significantly after a failed break and firm rejection on the technical cap. Expect to see a possible dip towards $0.000450000 to find support and additional bulls to go and try for a third attempt while price action gets squeezed with lower highs.

SFM sees a battle unfolding, as not seen since Waterloo

SafeMoon price sees bulls trying to show their strength and presence in the price action, going in for a break above the red descending trend line. A second attempt on Friday already failed and did not look successful for SafeMoon bulls. As price action remains to be run down with lower highs since the high of June 17, bulls look set to lose the fight and could be in for a severe defeat and retreat, as Napoleon had at Waterloo. 

SFM price will further bounce off that red descending trend line as nothing has changed on the fundamentals or the current economic and macro situation. Inflation issues are still biting into the households disposable incomes and limit the amount people can spend investing in cryptocurrencies. On the back of that, expect to see a drop towards $0.000350000 near the 78.6% Fibonacci level. This level has been underpinning price action for quite some time and could see mounting pressure as SFM falls back to that level.

SFM/USD daily chart

Should bulls be able to keep their act together, expect to see a break above the red descending trend line. With that move, additional investors will jump on this bullish signal which will pump up SFM price towards $0.000611824. That is the 61.8% Fibonacci level and the 55-day Simple Moving Average around $0.000593192, making it a double belt of resistance that will be impossible to break through and thus only offering limited upside gains of around 13%.