- SafeMoon price action performed a sharp knee-jerk bullish reaction on Friday.
- SFM price could be bouncing off the low of $0.000342750 and start to fade back to that level.
- Expect to see confirmation of what is to come next week.
SafeMoon (SFM) price performed a squeeze to the upside on Friday in what turned out to be a knee-jerk reaction that followed after price action bounced off the 78.6% Fibonacci level. That fell together with the Relative Strength Index (RSI), which bounced off the oversold barrier and went higher. The risk is that the tops come down, and price action gets squeezed towards the downside and drills down on it to break lower next week.
SFM price at risk of a false break
SafeMoon price has shot out a few bears in its knee-jerk reaction on Friday that shot through all the moving averages. The risk going into and over the weekend is that the lows start to get lower, and the price drops further to that base level. As pressure will start to mount again on that base level at $0.000342750 or the 78.6% Fibonacci level, it means issues for next week.
SFM price is opening below the 21-day Simple Moving Average (SMA) at $0.00648722, which is not a healthy sign to build on, as price action will drop back to lower levels as the peaks over the weekend will not be able to top out the one from Friday. Little by little price will drop back to the baseline at $0.00342750 and break below it towards lower levels with the risk that price action completely evaporates and SFM price because worthless. That could happen when a perfect storm opens on Monday trading with dollar strength, global markets at risk-off and cryptocurrencies bleeding across the board.
SFM/USD daily chart
Should there be a continuation of the trend on the back of some dollar weakness or because over the weekend, no actual risk events can unfold, SFM price could have room to catch up higher. Then the 50% Fibonacci would come into play, and price action could climb higher towards $0.000800817. If $0.001000000 can be reached is rather doubtful, though, as the current tail risks that are keeping a drag on price action will not go away overnight.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.