SafeMoon’s price has been stuck in a sideways trend since May 23, with little hope of changing the period of underperformance.
SAFEMOON is stuck in a downtrend, as the cryptocurrency keeps making lower lows and higher highs.
On the 4-hour chart, the SafeMoon price action has been unremarkable, forming a descending parallel channel. Two parallel trend lines can be constructed by connecting the swing highs and lows, making the chart pattern.
With the current direction of the SafeMoon price looking to be sideways, the asset’s consecutive lower lows signal that it is consolidating to the downside.
On June 22, the price of SafeMoon fell below the parallel channel’s lower trend line, resulting in a 32 percent loss and a reaction low of $0.00000232.
While SAFEMOON has lost the lower barrier of the chart pattern as support, a target for the asset can be determined by creating a parallel channel adjacent to the current pattern.
This would result in a 27% drop in the SafeMoon price.
Although the lower barrier of the second parallel channel was breached, SafeMoon price managed to quickly recover in tandem with the broader cryptocurrency market, led by Bitcoin.
Currently, the 27.2% Fibonacci retracement level acts as the first line of defense for SafeMoon at $0.00000328.
If SafeMoon price fails to sustain trading above this level and also breaks below the lower boundary of the first descending parallel channel, SafeMoon is likely to tag the middle boundary of the second chart pattern below, effecting a 20% decline toward $0.00000274.
If bearish selling pressure persists, SafeMoon’s price could drop by 35%, hitting the bottom trend line of the chart pattern and crashing into the demand barrier at $0.00000231.
If SafeMoon price manages to effect a reversal of fortune, investors should pay attention to the 50% Fibonacci extension level at $0.00000413, which coincides with the 50 four-hour Simple Moving Average (SMA) and the 100 four-hour SMA and functions as crucial resistance.
SafeMoon price action is predicted to go sideways with a small downturn until SafeMoon bulls are able to lift prices higher against the sellers’ continuous dominating distribution.
