- SafeMoon price shows the breakout from a falling wedge is still in play.
- If the $0.00000159 support level holds, SAFEMOON could rally another 20%.
- A breakdown of the $0.00000140 swing low will invalidate the bullish thesis.
SafeMoon price is currently experiencing a slowdown as it hovers above a stable support floor. However, investors need to note that a successful bounce off this barrier could extend the altcoin’s rally.
SafeMoon price contemplates gains
SafeMoon price set up three lower highs and two lower lows since September 6. Connecting these swing points using trend lines reveals the formation of a falling wedge. This technical setup forecasts a 38% upswing to $0.00000182, obtained by adding the distance between the first swing high and swing low to the breakout.
On September 29, SafeMoon price rose roughly 30%, shattering the upper trend line of the falling wedge. Since then, SAFEMOON has rallied 19% and is currently hovering above the $0.00000159 support floor.
This barrier is crucial in determining where SafeMoon price will go next. A bounce off this foothold is crucial for an extension of the uptrend. In this case, SAFEMOON is likely to continue climbing another 20% to retest the $0.00000189 resistance level.
SAFEMOON/USDT 1-day chart
While things are looking on the fence for SafeMoon price, a breakdown of the immediate support floor at $0.00000159 will indicate that the selling pressure has increased, allowing bears to take control.
In a situation where SafeMoon price shatters the $0.00000140 swing low to create a new lower low, the bullish thesis will face invalidation. This move might potentially trigger a further descent to $0.00000130 or lower.
SafeMoon bulls look for a breakout to $0.0000024
- SafeMoon price is up as much as 13% on the Tuesday trade session.
- A breakout above Senkou Span A positions SafeMoon to test $0.0000024.
- Bitcoin futures ETF approval could weigh negatively on SafeMoon.
SafeMoon price is one of the best performers of the day, with moves as high as 13% above the open. While the breakout above $0.0000019 is bullish, momentum must be maintained to push SafeMoon above the Cloud to create clear bullish conditions.
SafeMoon price breaks out above $0.0000019; the next test is $0.000024
SafeMoon price action has one more resistance zone ahead: $0.0000024. The top of the Cloud (Senkou Span B) is the most substantial level in the Ichimoku Kinko Hyo system. It represents the most challenging level of resistance on the chart. The question now is this: does SafeMoon have enough momentum to breakout above $0.0000024? According to its oscillators, yes.
The Relative Strength Index has been in bear market territory since the beginning of the SafeMoon price chart history (May 2021 on this chart data). However, there are strong signs that the first conversion from a bear market to a bull market is coming. The Composite Index is about to cross above the slow-moving average, just as the Relative Strength Index is about to cross above the final oversold level at 65. This could generate substantial buying pressure and push SafeMoon price all the way to $0.0000030.
SafeMoon/USDT Daily Ichimoku Chart
However, SafeMoon is beholden to Bitcoin’s price action. The current bullish outlook for Safemoon price could easily be invalidated if Bitcoin were to experience a broad sell-off due to the Bitcoin futures ETF hype. Bearish sentiment for SafeMoon will return if there is a daily close of 0.0000015 or below.
SafeMoon price needs to advance 35% to avoid bearish fate
- SafeMoon price has been on a slow but steady uptrend since September 29.
- A bearish divergence looms on SAFEMOON, hinting at bearish things to come.
- The grim outlook can be avoided if buyers manage to produce a swing high at $0.00000239.
SafeMoon price is in a tough spot despite its two-week uptrend. While a bearish outlook is staring at SAFEMOON, it can be sidestepped if the bulls push the altcoin higher.
SafeMoon price at inflection point
SafeMoon price rose roughly 80% to where it currently stands, $0.00000179. This run-up resulted from the breakout from a rising wedge pattern that formed between September 5 and September 28.
Now, SafeMoon price has produced a lower high with respect to the swing point on September 5. The Relative Strength Index (RSI), however, has formed a higher high within the same period. This fork between the price and the RSI is called a bearish divergence.
Often, this setup leads to a correction. Therefore, SafeMoon price is, generally speaking, up for a retracement. However, investors need to note that if the bulls manage to propel SAFEMOON up by more than 35% and produce a decisive close above $0.00000239, it will create a higher high, eliminating the short-term bearish outlook.
Therefore, SafeMoon price has to produce a swing point higher than $0.00000239 to escape the pessimistic fate. If the buyers fail to do so, SafeMoon price will likely retrace 27% to the immediate support level at $0.00000142. Here, SAFEMOON can give the uptrend another try.
SAFEMOON/USDT 1-day chart
On the other hand, if SafeMoon price breaches the $0.00000142 support barrier, it will pull back 22% to the last line of defense at $0.00000109 or the September 28 swing low.
A decisive close below this barrier will invalidate the bullish thesis and trigger a downswing to $0.00000612.
Whale buys $225,000 worth of SafeMoon as analyst turn bullish
- A new Safemoon wallet update was pushed out last week; the development team has upgraded the wallet with new features.
- Safemoon wallet’s beta testers consider it easy to use for beginners; recently, the BNB direct buy feature was added.
- Within 24 hours of its launch, the Safemoon wallet ranked in the top 25 applications on the AppStore.
- The dominance of large wallet investors is less than 15%, which implies Safemoon is accessible to retail traders, unlike DOGE or SHIB.
Safemoon faced severe criticism from traders in the community before the launch of its wallet application. Beta testers have reviewed the wallet and have a bullish outlook on SafeMoon.
Whales are bullish on SafeMoon with the launch of its wallet
The community-driven DeFi token SafeMoon has recovered from the drop in price that followed the unsuccessful triple launch. Traders expected SafeMoon to deliver a wallet alongside iOS and Android compatible applications.
SafeMoon failed to deliver and revealed that it hit a technical snag in launching all three products at once. Since then, SafeMoon has worked on its wallet app and launched it for beta testers.
The wallet’s beta program participants have shared positive reviews, testing features like direct buy for Binance coin. A new update was published by the development team less than a week ago.
John Karony, CEO of SafeMoon, tweeted:
Beta testers of the #SAFEMOONWALLET should have the BNB direct-buy button.
I want to give a special thanks to the team for making sure this gets done. #SAFEMOON is the #Evolution!
P.S. I will be at the Silicon Slopes Summit in Utah.— John Karony (@CptHodl) October 10, 2021
Within 24 hours of the application’s launch, it ranked within the top 25 on the application store.
Further, as of October 13, SafeMoon’s top 50 whale wallet dominance dropped below 15%. Top 10 and top 25 wallet’s dominance has dropped below 20%.
Altcoins that rank in the top 30 by market capitalization have high whale dominance; SafeMoon is distributed evenly across wallet addresses with different balances and implies less control by whales.
A large wallet investor bought $225,000 worth of SafeMoon, and analysts have turned bullish on the altcoin. Despite a nearly 95% drop from its peak, SafeMoon is posting gains and recovering from the “unsuccessful triple launch” event.