• Safemoon price remains locked in a descending channel formation on the four-hour chart, weighed down by the overall market.
  • Absence of the Fear of Missing Out (FOMO) in rookie tokens keeps attraction to SAFEMOON bounded.
  • Frictionless yield bug invites vulnerability to the digital asset, raising the risk of token holders losing their funds.

SafeMoon price evolution since May 25 has tested the patience of bullish speculators. The rookie token has not commanded sustainable buying pressure; instead, it is locked in a relentless descending channel, offering brief, swing trade opportunities. Until SAFEMOON can release from the channel, there is a return of trust in the broader cryptocurrency complex and a reignition of FOMO in new cryptocurrencies; it will carry a bearish tilt.

SafeMoon price cannot find clarity in a market lacking trust

Launched on March 21 with a SafeMoon price of $0.0000000010, the relatively new cryptocurrency reached $0.00001500 on April 20, rewarding the first adopters with an astronomical return. The magnitude and speed of the advance captured headlines, lifting the number of users to over one million.

The SAFEMOON market capitalization currently rests at $2.37 billion, ranking it #203 in the cryptocurrency rankings with over 585 trillion tokens in circulation, based on CoinMarketCap data. It is relatively inexpensive compared to most digital assets allowing investors to amass positions in the millions of SAFEMOON.

SAFEMOON developers can burn tokens manually with the logic that a smaller supply will drive up the price. In the protocol whitepaper, SAFEMOON states that it “aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term.”

SAFEMOON is not listed on the major cryptocurrency exchanges, so enthusiastic investors need to access it on the decentralized PancakeSwap exchange.

Currently, SafeMoon price is resting in a descending channel as the broader cryptocurrency dominated by a lack of trust seeks direction and searches for a catalyst, whether bullish or bearish. The lack of direction is manifested in the number of triangle patterns on the charts, whether it is a symmetrical, ascending or descending version. For sure, a catalyst is not far off, but SAFEMOON will not be motivated to move higher without a more robust market.

A breakout above the channel’s upper boundary at $0.00000452 will clear SafeMoon price from the May 11 declining trend line at $0.00000435 and put SAFEMOON on course to test the 38.2% retracement of the May correction at $0.00000620.

The 200 four-hour SMA at $0.00000662 will be an epic confrontation, considering that it resisted the rebound attempt from the May 19 low. It would still represent an almost 50% gain from the channel’s upper boundary as of today.

Ambitious SAFEMOON investors should target the 50% retracement at $0.00000731 and then the 61.8% retracement at $0.00000841, which aligns with considerable price congestion gathered from May 6 to May 18.

SAFEMOON/USD 4-hour chart

After tagging the all-time high at $0.00001500 on April 20, SafeMoon price collapsed 90% as FOMO exited the building. Based on that experience, investors need to be prepared for the downside.

A four-hour close below the channel’s lower boundary at $0.00000306 would alert investors to anticipate a test of the May 23 low at $0.00000285 and the May 19 low at $0.00000261, leaving a 35% decline for the undisciplined market operators.

SafeMoon price may be impacted by the discovery of vulnerability

Pera Finance announced a critical vulnerability with more than 100 projects in a recently published medium article, including the much-hyped digital asset SAFEMOON. These projects, including FEG Token BSC, Pig Finance, Kishu Inu, CateCoin and more, forked the gasless holder yield smart contract created by Reflect Finance and forked the holder yield bug as well. The contract owner can use the bug, and if used, “a certain amount of tokens from the balances of all users are instantly transferred out, causing them to lose their funds.”

It is a wake-up call for cryptocurrency enthusiasts to be very attentive when allocating their capital to new or relatively new tokens. It is essential to seek projects with more exhaustive pre-launch vulnerability audits.

SafeMoon price lacks enthusiasm as risk-on aversion resonates

The memorable rally in SafeMoon price from the launch price of $0.0000000010 to April 20 $0.00001500 was a classic case of FOMO or fear of mission out. A cryptocurrency with no history combined with limited investor knowledge generates such returns only if individuals are compelled to chase returns, with no attention to the risk profile of the digital asset or some form of selling methodology.

Until there is a return to chasing returns at all costs, rookie cryptocurrencies such as SAFEMOON will not have the price energy to separate from the broader cryptocurrency market and mirror the early returns that captivated investors and the media. Of course, it may never.

SafeMoon price is defining a price history and personality. It is searching for the next wave of FOMO, guaranteed security for holders to transform it into a mainstay digital asset, such as what occurred with DOGE, and a replenished bullish spirit in the larger cryptocurrency market.


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


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP