As the rookie cryptocurrency retests the May 23 low of $0.00000285, SafeMoon’s attempt at a cup completion cheat pattern fails.
The volume profile shows no change, implying that the pullback was caused by a lack of buying rather than an increase in selling.
The lowest daily close for SAFEMOON since May 19 is $0.00000315, thus today’s attention will be on the daily close, which is now $0.00000314.
Since May 19, the SafeMoon price has been mired in a bottoming process that has perplexed investors with a slew of missed buy signals and patterns that never materialized. SAFEMOON appeared to be defining a cup completion cheat pattern just a few days ago, providing a timely opportunity to profit by 20%. The pattern failed over the weekend, with the digital asset falling below $0.00000331, leaving it exposed to a new corrective bottom.
From a low of $0.00000230 on June 22 to a high of $0.00000410 on June 29, SafeMoon price rallied nearly 80%, surpassing the 50 two-hour simple moving average (SMA) at $0.00000324 and, more importantly, logging the first overbought condition on the two-hour Relative Strength Index (RSI) since early May. The size of the SAFEMOON surge, as well as its momentum, suggested an impetuous bid and a renewed resolve.
Multiple tests of the 200 two-hour SMA, supported by the 50 two-hour SMA, culminated the SAFEMOON rally. It was subsequently demolished by a negative momentum divergence, as the two-hour RSI failed to confirm the June 29 price high. SafeMoon’s price, on the other hand, appeared to be preparing to form the handle of a cup completion cheat pattern with a trigger price of $0.00000410.
The bullish interpretation, as shown on the chart, did not pan out. Yesterday, the SafeMoon price fell below $0.00000331 and touched the May 23 low of $0.00000285 before rebounding due to an oversold reading on the two-hour RSI.
With yet another fakeout on the books, SafeMoon’s price is once again being dictated by the sphere of effect of the May 23 low. SAFEMOON is being pushed lower by two moving averages and a descending trend line dating back to June 18.
SafeMoon price has to rally above the 50 two-hour SMA at $0.00000347, the 200 two-hour SMA at $0.00000354, and June’s descending trend line at $0.00000368 to reclaim a positive narrative. It would be a SAFEMOON surge of more than 15% from its present price. This is a plausible scenario, but not in the context of the cryptocurrency complex’s renewed selling.
At this time, the price of SafeMoon is susceptible, as it is being squeezed by moving averages and a trend line. As long as SAFEMOON remains in this price range, a test of the June 22 low of $0.00000230, meaning a 30% drop from the current price, is a possibility.
SAFEMOON will be influenced by the May lows and the erratic price movement in the cryptocurrency complex until it clears the barrier highlighted above, pushing investors in the digital token to be patient./n
