- SafeMoon traders have broken a major part of the downtrend.
- With a respected uptrend line at $ 0.00000118, traders are looking to gain the upper hand.
- With the RSI at 50, traders shouldn’t face short-term resistance to record gains.
SafeMoon (SAFEMOON) price finally shows some divergence after six consecutive weeks of downtrend in SAFEMOON price action. Traders can defend a crucial level at $ 0.00000118, which is the crossroads between the downtrend and the start of the uptrend. Traders have the power to push the price of SafeMoon up to $ 0.00000296.
SafeMoon traders are at a crossroads to start a trader race towards $ 0.00000296
SafeMoon’s price action has been stuck in a downtrend for six consecutive weeks. Traders are proving resilient as SafeMoon’s price captures an offer in a highly competitive market where risk aversion appears to be the theme of the past few days. The uptrend and downtrend intersect at $ 0.00000118, which traders manage to defend right now.
With the significance of $ 0.00000118, traders have two perfect entry points here. One is the red descending trend line that has served as a guide for the downtrend in recent weeks. And on the upside, the green rising trend line was causing contraction. With these two elements now in favor of traders in SafeMoon’s price action, the road appears paved with gold towards $ 0.00000296, the 78.6% Fibonacci level.
SAFEMOON / USD weekly chart
Expect traders to struggle with the 5-day simple moving average (SMA) at $ 0.00000158 as it has already capped the price action to the upside. But the Relative Strength Index (RSI) is solid around 50, which makes it a good argument for traders to match the seller’s action at that level. Higher up, the navigation should go smoothly towards this $ 0.00000296.
With market sentiment very choppy, expect a bad mood in global markets to force traders to reduce their positions in a cash-and-run scenario. This would mean good news for traders on SafeMoon’s price action and trigger a break below the green ascending trend line.
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