- SafeMoon has been trading in consolidation since 23rd May, failing to stimulate investor’s interest.
- The dominant downtrend makes underperformance recovery questionable.
- SafeMoon’s attempts to rally indicate some optimism with massive obstacles ahead.
SafeMoon trades in sideway trends since 23rd May. At the moment, the asset sees little optimism of recovering from its underperformance. SafeMoon is stuck in a decreasing trend as the digital coin extends its lower highs and lower lows.
SafeMoon on a Tight Range
SafeMoon has had a monotonous trend recently, creating a plunging analogous channel on the four-hour trading chart. By combining the swing lows and swing highs, you can draw 2 lateral lines, establishing the chart shape.
As much as the dominant SafeMoon’s price direction shows sideways moves, the steady lower lows by the cryptocurrency indicate that the coin consolidates with a downward trend.
Keep in mind that the crypto coin broke beneath the lower line of the channel on 22nd June, initiating a 32% decline towards the $0.0000232 low.
Although SafeMoon lost its support at the lower boundary, you can measure the asset’s target by sketching a parallel channel contiguous to the present price pattern. That might give the crypto an expected 27% price drop.
Though the asset breached the lower resistance of its 2nd parallel channel, the altcoin managed to recover within no time as the crypto market surged, led by BTC.
At the moment, the 27.2% Fib Retracement serves as the initial defensive line for the coin at $0.00000328.
If SafeMoon fails to maintain trading over this level and further breaks beneath the lower border of the initial downward parallel channel, the coin might experience a 20% drop to $0.00000274.
If the market witnesses a bearish momentum, the selling pressure will increase, dipping SafeMoon price by 35%, down to the resistance at $0.00000231.
Anyone planning to invest with SAFEMOON should consider the 50% Fib Extension zone at $0.00000413, coinciding with the 50 4-Hr SMA and the 100 4-Hr SMA acting as resistance when the crypto manages to stage a price reversal.
SAFEMOOM bulls have to step up to take the prices high against the extended overpowering seller distribution to prevent coin’s wild price movement. Failure to that, SafeMoon might move sideways with a slight drop-trend.