- Safemoon price sweeps the springtime swing lows.
- Multiple indicators signal a bearish rally underway.
- Invalidation of the bearish thesis could occur if the bulls hurdle both recently rejected moving averages.
Safemoon price could be in the beginning stages of a much larger decline.
Safemoon price headed south
Safemoon price has bullish traders scurrying for the hills, as a sharp decrease has started this week’s trading session. The breach has wiped out the liquidity under May’s swing low at $0.0002716 and could be the first sign of Safemoon’s impending doom.
Safemoon price currently trades at $0.000280. The current decline is accompanied by very low volume, while SFM hovers above a descending parallel channel are the only positive indications to be wary of. Aside from that, the Relative Strength Index has breached the line in the sand that justifies bulls staying in the market to support the SFM price. The 21-day simple and 8-day exponential moving averages rejected all of the bullish retaliation attempts during the weekend.
SFM/USDT 1-Day Chart
Combining these factors, Safemoon’s price could witness a jaw-dropping decline in the coming days. It has been mentioned in previous outlooks that a bearish target for the controversial cryptocurrency would reside in the $0.0001100 zone. The decline would result in a 60% decrease from the current Safemoon price.
Invalidation of the bearish thesis can occur if the bulls can hurdle both moving averages. Such a move could prompt a rally towards previous congestion near $0.0003950, resulting in a 50% increase from the current Safemoon price.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
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