- SafeMoon price triggers irregular head-and-shoulders topping pattern.
- 4-hour Ichimoku Cloud remains a price magnet, containing price losses.
- SAFEMOON rewards long-term ownership by penalizing sellers with a 10% fee.
SafeMoon price triggered the head-and-shoulders top on May 16 with a trade below the neckline at $0.00000882. SAFEMOON has rebounded, but the bearish outlook remains active.
SafeMoon price has lost the cosmic euphoria
For the unaware, SAFEMOON is a new cryptocurrency that began trading in March 2021. The digital token began trading at $0.000000001 and a tiny market capitalization. According to Bitmart, SafeMoon price catapulted to $0.000015 by April 20, yielding a tremendous return for brave investors. However, it followed the giant rally with a 90% decline into April 21.
SAFEMOON has a maximum supply of 10 quadrillion tokens but only has 600 billion in circulation. It is a deflationary currency, as supply declines over time. Still, some have called it a pyramid scheme because sellers of the token are charged a 10% fee, with 5% of the fee being burned and the other 5% distributed to SAFEMOON investors. Investors are dependent on more people buying SAFEMOON to increase their investment.
On the 4-hour chart, SafeMoon price has rebounded from the decline below the neckline of an irregular head-and-shoulders topping pattern. The rebound has been contained along the Ichimoku Cloud, and SAFEMOON remains below the neckline.
Based on the topping pattern, the measured move target is $0.00000478, yielding a loss of over 45% from the neckline break on May 16 and a similar loss from price at the time of writing. The only two obstacles between SafeMoon price and the measured move target are the 200 four-hour simple moving average (SMA) at $0.0000068709 and the May 10 low at $0.00000550.
The bearish outlook will continue unless SafeMoon price rallies above the right shoulder high at $0.00001100.
SAFEMOON/USD 4-hour chart
Suppose SafeMoon price does rise above the right shoulder and the 78.6% Fibonacci retracement of the April crash at $0.00001213. In that case, SAFEMOON will not discover any resistance until the April 20 high at $0.00001500.