- SafeMoon price breakout from an inverse head-and-shoulders pattern failed today.
- Declining 50 four-hour simple moving average (SMA) putting pressure on SAFEMOON.
- A four-hour close above key tactical moving average may save digital asset from plummeting.
SafeMoon price failed to capitalize on the inverse head-and-shoulders pattern, keeping it below the crucial resistance elaborated by the 50 four-hour SMA and putting SAFEMOON on target to test the May 23 lows and possibly the May 19 lows.
SafeMoon price fades quickly with the broader crypto market
SafeMoon price remains in a larger downtrend that began on May 11. It has been interrupted with minor corrective bounces, but the recent inverse head-and-shoulders pattern presented a high probability opportunity for investors to begin pilot buys in the new, much-hyped digital token. Today that opportunity was voided when SAFEMOON traded below $0.00000438.
SAFEMOON outlook has shifted from positive to negative, with no credible support around the price at the time of writing ($0.00000410). The first definable support is the May 23 low at $0.00000285, followed closely by the May 19 low at $0.00000261, representing a 40% decline. The tight SafeMoon price range should command some buying interest from the ‘buy-the-dip’ group of investors.
A four-hour close below $0.00000261 would accelerate the SafeMoon price decline down to the April 21 low at $0.00000150, or potentially further, erasing almost 70% from the price at the time of writing.
SAFEMOON/USD 4-hour chart
On the other hand, if SafeMoon price can sustain a consolidation around the low of the right shoulder of the inverse head-and-shoulders pattern at $0.00000438 and architect a clear price pattern, SAFEMOON could quickly overcome the resistance framed by the 50 four-hour SMA at $0.00000519.
A SafeMoon price close above the tactically important moving average on the four-hour chart leaves SAFEMOON free to test the confluence of the 200 four-hour SMA at $0.00000694 with the declining trend line from the May 11 high at $0.00000700.
Further gains would see heavy resistance at $0.00001100.
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
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.