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SafeMoon Attempts Breakout That Could Send SFM Up More Than 15%

Over the past nine trading days, SafeMoon’s price has been subjected to heavy selling pressure. At $0.0014 worth, it finally found support after losing more than 26% of its value. However, bullish momentum has recovered since then, and bulls are again looking for an opportunity to seize control.

SafeMoon’s price action is ripe for a short-squeeze and a price rise

The inverse head-and-shoulders pattern has emerged as one of the most desirable bullish reversal patterns in technical analysis for SafeMoon pricing. As with any head-and-shoulders pattern, the neckline must be broken above $0.0016 for it to be complete or confirmed.

Head-and-shoulder patterns, on the other hand, are infamous for their high rate of pullback and throwback. A pullback to the neckline is quite likely when SafeMoon’s stock breaks out above this level. Many cautious traders use this behavior as a “re-test” condition before taking a long position. Re-tests that keep the neckline as support tend to attract new long positions from the sidelines. 

A retreat to the neckline is extremely likely after any breakout. Thus, SafeMoon may face two levels of resistance above the neckline that might cause a decline in the price. The Ichimoku Cloud (Senkou Span A) bottom at $0.00167 serves as the initial level of resistance. At $0.00173, the Ichimoku Cloud’s Senkou Span B (Senkou Span B) is the second most powerful indicator.

If a breakout re-test occurs, the neckline must hold as support for bulls to reclaim momentum and control of SafeMoon price Any near-term positive view would be thrown out the window if $0.00150 were to close below it.

Highlights

  • The 4-hour Ichimoku chart for SafeMoon shows a bullish reversal trend.
  • The likelihood of a long-term uptrend is muddled by oscillators.
  • Any bullish momentum may be stifled by critical resistance levels.

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