• SafeMoon price squeeze failed to materialize, opting to sweep the May 19 low briefly.
  • SAFEMOON 50 two-hour simple moving average (SMA) has turned lower, presenting a new resistance challenge.
  • The two-hour Relative Strength Index (RSI) marks oversold reading for the first time since May 28.

SafeMoon price fails to build on the golden cross signal on June 16 as the weight of the deteriorating cryptocurrency complex plunged SAFEMOON to a new correction low. The initial recovery was impulsive, but the digital token has shifted into a consolidation with no discernible clues about the direction or magnitude of the future trend. Thus, even though SafeMoon price craves a new opportunity, caution is warranted until a broader wave of strength strikes the altcoin segment of the market.

SafeMoon price rebound does show a marginal level of trust in the rookie cryptocurrency

In a spirited attempt to induce a campaign to “pop off” SafeMoon price on June 21, Reddit user “GMEandAMCbroughtme” on r/SatoshiStreetBets, encouraged SAFEMOON followers to create a crypto version of Gamestop and AMC. Unfortunately, the “biggest squeeze of all time” did not materialize as the altcoin fell below the May 19 low the following day, losing 20% on the two-hour candlestick.

The initial turn higher brought forth by the SafeMoon price strength during June 13-15 was respected by the 200 two-hour SMA, lending credibility to a mildly bullish outlook for SAFEMOON. However, after the turn lower, the longer-term moving average combined with the 50 two-hour SMA at $0.00000371 now presents formidable resistance if the digital asset chooses to break free from the minor consolidation.

Nevertheless, as long as SafeMoon price remains above the May 25 declining trend line, investors can maintain their attention on a timely entry price from the long side. Based on the current price structure on the two-hour chart, the optimal point to initiate a long position would be a close above the 200 two-hour SMA at $0.00000408. Yes, it is approximately 20% from the current price, but it is a small cost to pay to achieve a higher probability opportunity in SAFEMOON.

Above the 200 two-hour SMA, the targets include the June 15 high of $0.00000500, the May 25 high of $0.00000598 and finally, the 38.2% Fibonacci retracement of the May correction at $0.00000620, returning 50% to disciplined investors and sealing a new opportunity.

SAFEMOON/USDT 2-hour chart

SAFEMOON/USDT 2-hour chart

A close below the May 25 declining trend line, now at $0.00000308, will raise the potential of another test of the May 19 low of $0.00000261. It may come as a surprise in light of the oversold condition dictated by the two-hour RSI, but it should be noted that only one of the last three oversold readings resulted in a notable rebound for SAFEMOON. Thus, suggesting that a rally may not be on the horizon.

The worst-case scenario for SafeMoon price is an unstoppable plunge towards the April 21 low of $0.00000150, realizing a decline of over 50% from the current price.

At this moment, SafeMoon price appears to be in a lengthy bottoming process following the May correction, marked by stubborn moving average resistance, unremarkable levels of accumulation, and a general tendency to follow the cryptocurrency market trend. Therefore, when SAFEMOON can originate relative strength by exceeding outstanding resistance levels, market operators can feel more comfortable commencing trading operations in the rookie cryptocurrency.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP