SFM has fallen 30% since its previous rally in June.
Its downtrend coincides with a corresponding drop in Bitcoin’s price.
Technical analysis shows that short-term sentiment on SFM is bearish.
SafeMoon is a decentralized finance (DeFi) token created in March 2021 by former U.S. Department of Defence analyst John Karony. It relies on four functions during each trade: reflection, liquidity provider acquisition, a burn mechanism and contribution to the ecosystem growth fund.
The token’s price has fallen 30% since its previous rally in June and SFM could potentially be facing more sell-offs. Notably, its downtrend coincides with a corresponding drop in Bitcoin’s (BTC) price which is now trading below $20,000.
SFM started its journey in December 2021 at $0.0017. After a bull run commenced that same month, the token climbed from $0.00165 on December 30 to $0.0029 the next day.
However, its price plummeted to $0.00158 shortly thereafter on January 22, 2021, wiping out over half of its value in the space of 18 days.
SFM is currently trading at $0.000468 and ranks 3001st in the list of cryptocurrencies worldwide by market capitalization at $263 million. Its price is down over 3% in the last 24 hours.
The SafeMoon crypto is on the verge of testing $0.0004 support again and has been trading sideways since its price saw a rejection beneath a descending parallel channel. The coin is down an astonishing 93% from its all-time high of $0.007232 set on January 4, 2022.
More recently, SFM showed signs of recovery after consolidating between the $0.000584 and $0.000414 price levels since June 19. However, a run for the 70.5% retracement level at $0.000876 would have cemented the possibility of an upswing.
SFM has formed a bearish pennant pattern and is trading above the key $0.00045 support level, with the likelihood that bearish momentum will continue throughout this month. This means that the next key support level to watch will be at $0.00040.
Technical analysis shows that short-term sentiment on SFM is bearish, with 9 indicators displaying bullish signals compared to 13 bearish signals at the time of writing.
An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.
In terms of a SafeMoon crypto price prediction, SFM could see its price falling to $0.000000000421 by August 2022, dropping to $0.000000001 in January 2024 and hitting $0.000000000482 by January 2025.
This article was originally posted on FX Empire