What’s in store for the token in the upcoming sessions?
How is Safemoon protocol different from other tokens?
Yerevan (CoinChapter.com) – Safemoon, Decentralized Finance(DeFi) token, created on the Binance blockchain, traded at 0.00000331 against Tether USD Stablecoin (USDT) in the European session Monday.
The token formed in a descending triangle continuation pattern on the 4h chart. The horizontal support line assisted since late May, keeping Safemoon afloat. Since mid-June, the descending resistance line has proven its relevance, acting in confluence with two other trendlines at the 0.00000449 and 0.00000499 USDT price margins.
Safemoon consolidated after the May 19 market crash. It adopted no pronounced momentum vector since then. Hence, the descending triangle patterns can’t predict a continuation bias as of the moment. However, if the token stays in formation, it could face an additional 13 percent loss from the current 0.00000331 USDT and drop down to the lower horizontal trendline at 0.00000285 USDT.
After SAFEMOON exhausts the descending triangle, both bullish and bearish outcomes could be valid. However, in case of further declines, the token has another life raft in store. The 0.00000230 line could provide additional support.
If Safemoon adopts a bullish bias, it could retest several resistance lines. The recently relevant 0.00000353 USDT margin, as well as the mentioned 0.00000449 and 0.00000499 values. The 50-4 hour simple moving average (SMA-50) also acted as resistance in the past few sessions.
In a spirited attempt to “pop-off” the price, Safemoon bulls organized a Reddit campaign, which miserably failed to do the trick on June 21. Moreover, the price fell by 25 percent. Unfortunately, Safemoon is still in the bottoming process, showing no strong vector at the moment.
The rookie cryptocurrency was first introduced in March 2021. An explosive rally of 9,600 percent followed in April, bringing the price to the all-time high of 0.00001375 on April 21. It is not uncommon to see tokens flare-up in price right after launch, and often the price declines afterward. The rise and fall played out not only for Safemoon but for Internet Computer Protocol as well.
However, there is an uncommon detail about Safemoon. It has a selling penalty mechanism. In other words, buying the token is easier than selling it. The mechanism raised many eyebrows. Some Reddit users called Safemoon the “opposite of safe” and a clear scheme for inattentive traders.
Despite the harsh opinions, the token held its price, albeit without a bullish incentive.
It traded in a descending triangle, which hinted at a further 13 percent loss in the upcoming sessions unless Safemoon breaks above the confluence of resistance. The latter consists of the descending trendline of the triangle, the SMA-50, and the 0.00000353, 0.00000449, and the 0.00000499 trendlines.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.
Note: Binance has relisted LUNA and UST tokens YEREVAN (CoinChapter.com) – Terra, the algorithmic stablecoin issuance platform that ranked...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.