- SafeMoon price triggers irregular head-and-shoulders topping pattern.
- 4-hour Ichimoku Cloud remains a price magnet, containing price losses.
- SAFEMOON rewards long-term ownership by penalizing sellers with a 10% fee.
SafeMoon price triggered the head-and-shoulders top on May 16 with a trade below the neckline at $0.00000882. SAFEMOON has rebounded, but the bearish outlook remains active.
SafeMoon price has lost the cosmic euphoria
For the unaware, SAFEMOON is a new cryptocurrency that began trading in March 2021. The digital token began trading at $0.000000001 and a tiny market capitalization. According to Bitmart, SafeMoon price catapulted to $0.000015 by April 20, yielding a tremendous return for brave investors. However, it followed the giant rally with a 90% decline into April 21.
SAFEMOON has a maximum supply of 10 quadrillion tokens but only has 600 billion in circulation. It is a deflationary currency, as supply declines over time. Still, some have called it a pyramid scheme because sellers of the token are charged a 10% fee. 5% is distributed to SAFEMOON investors and the other 5% of the fee is split 50/50, half of which is sold by the contract into BNB, while the other half of the SAFEMOON tokens are paired automatically with the previously mentioned BNB and added as a liquidity pair on Pancake Swap. Investors are dependent on more people buying SAFEMOON to increase their investment.
On the 4-hour chart, SafeMoon price has rebounded from the decline below the neckline of an irregular head-and-shoulders topping pattern. The rebound has been contained along the Ichimoku Cloud, and SAFEMOON remains below the neckline.
Based on the topping pattern, the measured move target is $0.00000478, yielding a loss of over 45% from the neckline break on May 16 and a similar loss from price at the time of writing. The only two obstacles between SafeMoon price and the measured move target are the 200 four-hour simple moving average (SMA) at $0.0000068709 and the May 10 low at $0.00000550.
The bearish outlook will continue unless SafeMoon price rallies above the right shoulder high at $0.00001100.
SAFEMOON/USD 4-hour chart
Suppose SafeMoon price does rise above the right shoulder and the 78.6% Fibonacci retracement of the April crash at $0.00001213. In that case, SAFEMOON will not discover any resistance until the April 20 high at $0.00001500.
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
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.