- SafeMoon’s price continues to oscillate within a descending channel formation on the four-hour chart.
- The fall of the four-hour SMA 50 (SMA) provides resistance from May 31.
- A 40% gain is possible if it breaks above the May downtrend line.
SafeMoon’s price evolution since May 25 has tested optimistic investors’ patience. The rookie digital asset has not exerted sustainable buying pressure, but has remained locked in a descending channel offering brief swing trading opportunities. Until the SafeMoon price can break free of the channel and reignite SAFEMOON’s enthusiasm, investors should be content with lower double-digit returns.
SafeMoon’s price is hit by broader crypto market issues
SAFEMOON launched on March 21 with a price tag of $ 0.0000000010, and hit $ 0.00001500 on April 20, rewarding early adopters with an astronomical return. The scale and speed of the advance captured the headlines, bringing the number of users to more than a million.
The market capitalization is currently at $ 2.23 billion, ranking 204th in the cryptocurrency rankings with more than 585 trillion tokens in circulation, according to CoinMarketCap. It is relatively inexpensive compared to most digital assets, allowing investors to accumulate positions in the millions of SAFEMOON.
SAFEMOON developers can manually burn tokens with the logic that a smaller supply will increase the price. In the protocol whitepaper, SAFEMOON states that it “aims to implement a burning strategy that is beneficial and rewarding for those involved in the long term.”
SAFEMOON is not listed on major cryptocurrency exchanges, so enthusiastic investors should access it on the decentralized exchanger PancakeSwap.
Currently, SafeMoon’s price has fallen in a descending channel, replacing the strong downtrend at the May 23 low. The channel has held below the four-hour declining 50 SMA, and the volume supporting the formation has been below average.
A break above the upper limit of the channel at $ 0.00000476 should ignite a rally towards the May 11 downtrend line at $ 0.00000565 and then the 38.2% retracement of the May correction at $ 0.00000620.
The four-hour 200 SMA at $ 0.00000668 will be an epic confrontation, considering it withstood the attempted bounce from the May 19 low. It would still represent a 40% gain from the upper limit of the channel as of today.
Ambitious SAFEMOON investors should aim for the 50% retracement at $ 0.00000731 and then the 61.8% retracement at $ 0.00000841, which aligns with the considerable price congestion accumulated from May 6-18.