- SafeMoon price is nearing the apex of a descending triangle pattern, suggesting a pattern resolution soon.
- Bollinger Band Width (BBW) has contracted further, also indicating that a notable move is immediate.
- SAFEMOON does not show a weekly return of note since the end of April, confirming the recent challenges on the long side.
Safemoon price has been coiling within a descending triangle pattern since the May crash, highlighted by no sustainable rallies and continuous support along the May 19 low of $0.00000261. The downward trajectory has kept SAFEMOON investors on the defensive. However, in the context of tightening price traction enforced by the triangle pattern and emphasized by the notable contraction of the Bollinger Bands, combined with a nearing apex, SafeMoon price is poised for a substantive move soon, either way.
SafeMoon price has impressive potential yet to be developed
Based on the current SAFEMOON descending triangle pattern, the measured move is 57%, projecting a downside price target of $0.00000111. To activate the pattern, SafeMoon price needs to log a daily close below the May 19 low of $0.00000261, something the digital token failed to achieve on June 22, July 19, July 20, and so far during today's test.
The upside measured move price target is $0.000000499. A breakout is recorded when SAFEMOON can best the 20-day simple moving average (SMA) at $0.00000295 and then chart a daily close above the triangle’s upper resistance line at $0.00000318. The ideal scenario is for SafeMoon price to close the breakout day above the 50-day SMA at $0.00000349, enabling the cryptocurrency to rally unfettered to the measured move target and a test of the June 16 high, at $0.00000500.
Regarding the timing of the 57% move, the contracting SafeMoon price and as a result, the Bollinger Bands have pressed the BBW to the lowest reading since April, proposing an imminent release from the descending triangle pattern. Strengthening the timeliness of the scenario is that SAFEMOON now is beyond 80% of the distance between the triangle’s base and apex. Any further coiling to the apex will diminish the robustness of the eventual breakout.
SAFEMOON/USD daily chart
In the case of a throwback, use the SAFEMOON triangle’s horizontal support line as a stop on a daily closing basis. Alternatively, use the triangle’s resistance line as a stop on a daily closing basis for pullbacks.
The final SafeMoon price direction is unknown, but the degree of price contraction points to a significant move following the triangle pattern’s resolution. Historical probabilities do indicate it will be to the downside. Nevertheless, SAFEMOON market operators should be prepared for both scenarios with precise, programmed alerts to maximize a quick burst higher or lower.
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.