- SafeMoon price got slaughtered over the weekend as geopolitical woes continued.
- Although price action has stabilised, SafeMoon is not seeing a relief rally like Bitcoin and other major cryptocurrencies.
- Expect to see more downside, towards $0.001223, which falls in line with the 23.6% Fibonacci.
SafeMoon (SAFEMOON) price action remains on the back foot after bulls took a beating over the weekend. The geopolitical weight just proved to be too much for investors who started to pull their money out of SafeMoon enmasse, with a significant correction as a result. Even the Relative Strength Index (RSI) trading deeply in oversold territory is not pointing to an end to the pain anytime soon – and more downside set to come.
SafeMoon sees investors fleeing the scene
SafeMoon price is bleeding as the price action took a beating over the weekend. With more negative news on the Ukrainian situation escalating, investors quickly pulled their funds out of risk assets like SafeMoon. This resulted in SafeMoon tanking in a decline of 17%, without any sign of support coming in.
Expect no end to the pain as investors are still not coming back to SafeMoon price action for the relief rally that has been ongoing since today's early trading hours. It looks instead like SafeMoon is set to sink yet further going into this trading week, with support at $0.001223 remote. This falls in line with the 23.6% Fibonacci level and another 12% drop in market value. Nor is that where the pain trade will stop next , as bears could well be in for the long squeeze and target a break below $0.0010000, where the 38.2% Fibonacci level at $0.000990 would be a good place for bears to book profit, and the RSI probably would not have any more room to decline further.
BTC/USD daily chart
With the red descending trend line coming in from above, it looks as though price action has been hanging on this reference point since Sunday. A bounce off the red descending trend line could see SafeMoon jumping back from $0.001398 to $0.001601 and booking 14% of gains in the process. Should there be more positive news coming out of the geopolitical stage, expect a return to 0.001691, which was the low of February 02.
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
Michael Saylor predicts Bitcoin to surge to $100K by year-end
MicroStrategy's executive chairman, Michael Saylor, predicts Bitcoin will hit $100,000 by the end of 2024, calling the United States (US) election outcome the most significant event for Bitcoin in the last four years.
Ripple surges to new 2024 high on XRP Robinhood listing, Gensler departure talk
Ripple price rallies almost 6% on Friday, extending the 12% increase seen on Thursday, following Robinhood’s listing of XRP on its exchange. XRP reacts positively to recent speculation about Chair Gary Gensler leaving the US Securities and Exchange Commission.
Bitcoin Weekly Forecast: 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.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin (BTC) surged up to 16% in the first half of the week, reaching a new all-time high of $93,265, followed by a slight decline in the latter half. Reports suggest the continuation of the ongoing rally as they highlight that the current trading level is still not overvalued and that project targets are above $100K 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.