- SafeMoon has completed 5 clear impulse waves down.
- Its next retracement target is 50% above the current price.
- A break below $0.00106 will invalidate the bullish thesis.
SafeMoon price action shows potential for a price surge of up to 50%. The altcoin is currently fluctuating 20% above the all-time low of $0.00106.
SafeMoon price bound for a big move
According to Elliot Wave Theory, impulse waves, which come in 5 waves, are followed by 3 corrective wave structures. Since the all-time high of $0.003 was put in on January 5, it is relatively easy to identify five impulse waves down into the all-time low on January 4.
Another rule known amongst Elliot Wave analysts is that corrections usually retrace back into the 4th wave of one previous degree. The 4th wave is currently in the $0.0016 to $0.0018 zone, 50% away from the current price.
SafeMoon Daily Chart
Buying countertrend is very risky, considering how much power bears have had on SafeMoon price. It is essential to remember that a double bottom is a very probable scenario for the digital asset.
Since SafeMoon bulls are only supported by one definitive low, being an early buyer is not advised. The best way to approach this trade is to place a buy-stop above SafeMoon’s current consolidation.
The invalidation for the bullish thesis sits 17% below the current price at the all-time low of $0.00106. If bulls cannot put in a double bottom as support, then future targets for SafeMoon price could be pretty severe. Bears would likely send SafeMoon price somewhere between $0.0001 and $0.0002, a potential 80% drop from the current price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.