SafeMoon Finds Support and Positions for $ 0.000007 Return
- The SafeMoon price has been the definition of what whipsaws look like in cryptocurrency trading.
- Mean profit taking and reversion traders push SafeMoon down as the market fights for equilibrium.
- The road to $ 0.000007 can be difficult but not overwhelming.
SafeMoon’s price has retraced more than 46% from new all-time highs set on October 29e. SafeMoon remains 40% below its historic highs. A strong area of confluence of support can limit and increase selling pressure.
SafeMoon price plunges nearly 50%, finds support
SafeMoon’s price is at an inflection point. A massive gap between the top of the Cloud (Senkou Span B) and the Kijun-Sen indicates that any move below the Kijun-Sen could trigger intense selling pressure to test Senkou Span B as support. However, there is support between these two levels of Ichimoku.
The 50% Fibonacci retracement from the all-time high to the low of the weekly strong bar is $ 0.0000039. Sharing this value area is the weekly Tenkan-Sen (blue ray, horizontal) at $ 0.0000040. SafeMoon’s price has rebounded four times off the 50% Fibonacci retracement in the past six days. What is the probability that this confluence zone will continue as a support? Oscillators can give us a clue.
The relative strength index remains in bull market conditions. It has yet to test the first level of oversold in a bull market (50) since it rose to 100, but it has rebounded to 55. This indicates that momentum may continue to rise. Additionally, the Composite Index created a lower low and marked extreme lows, increasing the likelihood that the SafeMoon price would find at least some equilibrium in its current value zone.
SafeMoon / USDT Daily Ichimoku Chart
Any close below the 50% Fibonacci ratio could trigger increased selling pressure for the Safemoon price. The 161.8% Fibonacci expansion is just above the 2021 volume checkpoint at $ 0.0000026 and above Senkou Span B at $ 0.0000024. If the price of SafeMoon can maintain support near the 50% Fibonacci retracement, the most likely scenario is a consolidation market.