- Safemoon price declines in stair-step fashion throughout the summer.
- An influx of volume has entered the market during September.
- A breach below $0.0002716 could catalyze a 70% decline.
Safemoon price has been descending in turbulent fashion throughout the summer. A breach of the swing low established in May could catalyze a sharp decline.
Safemoon price shows concern
Safemoon price has been a lagging cryptocurrency throughout the summer. Since the first day of Summer on June 21, the Safemoon price has lost 54% of its market value. Despite the percentage, the decline has not come with ease as the price has stair-stepped its way south, causing erratic and unpredictable pullbacks along the way.
Safemoon price currently auctions at $0.0002950, just above a descending parallel channel which has continued to provide support throughout the decline. This is a very peculiar signal that prompts a reasonable question. What will Safemoon do next?
SFM USDT 12-Hour Chart
The Volume Profile Indicator shows an uptick in transactions amidst the decline since September. Furthermore, the bears have lost support from the 8-day exponential moving average this week. Combining these factors, this thesis leans toward a bearish outcome.
The current Safemoon price hovers 8% above a swing low established in May at $0.0002716. The stair-step decline may be enticing bullish traders to take a gamble by placing invalidation of their positions under the low. This thesis argues against doing just that. A breach of the low is likely to occur if market conditions persist. A breach of the springtime swing low could catalyze a 70% drop using a triangle projection method since the swing low is a leg within the triangle.
In the following video, our analysts deep dive into the price action of Safemoon, analyzing key levels of interest in the market. -FXStreet Team