SafeMoon price sliced through a critical area of resistance but has yet to sustain an upward movement. Such market behavior suggests that the most likely outcome is a reversal toward new lows.
SFM price has been falling since reaching a high of $0.00248 on Jan. 25. So far, it has reached a minimum price of $0.00018 before bouncing. SafeMoon price today is 90% below its aforementioned Jan. highs.
There is no pattern in place for the current price action. However, SFM price has fallen below the $0.00040 horizontal area, which is now expected to provide long-term resistance.
SafeMoon Price Prediction Breakout Does Not Lead Anywhere
A closer look at the SafeMoon price action since June gives a slimmer of hope to the bulls since it shows a breakout from a descending resistance line and its subsequent validation as support.
While the ensuing bounce created a long lower wick (green icon), it has yet to lead to an upward movement. Additionally, the RSI has not generated any sort of bullish divergence.
Even if an upward SFM price movement were to follow, there would be strong resistance at both $0.00051 and $0.00071. These are the 0.382 and 0.618 Fib retracement resistance levels and horizontal resistance areas to boot.
SFM Price to New All-Time Lows?
Due to a strong underlying bearish trend and lack of bullish signs, a continued downward movement seems to be the most likely scenario.
In this case, it is possible to use an external Fib retracement on the most recent bounce in order to determine the closest support areas. The 1.27 external Fib level is at $0.00006. This is also close to the yearly low of $0.00002. If the SafeMoon price were to fall below this level, it would drop to a new all-time low.
A reclaim of the $0.00040 resistance area would invalidate this possibility and suggest that the SFM price trend is bullish instead.
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