SafeMoon price plays a pain game with bulls as the decline is not over yet

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.