- SafeMoon price surged nearly 170% after sweeping the lows at $0.00000356.
- After setting up new swing highs at $0.00000951, SAFEMOON could pull back 26% as investors book profits.
- In some cases, this retracement could extend up to 40% toward $0.00000559.
SafeMoon price experienced an explosive run-up on Tuesday after an extended pullback. Now, SAFEMOON looks primed for another retracement after creating a new local top.
SafeMoon price eyes correction
On the 4-hour chart, SafeMoon price is trading at $0.00000934 after a 170% upswing from the local bottom at $0.00000356. Since this leg up is overextended, investors can expect a sell-off that will drag SAFEMOON down to the support level at $0.00000691. Interestingly, this level coincides with the 50 four-hour Simple Moving Average.
This 25% crash could even sweep the 50% Fibonacci retracement level at $0.00000623. However, under dire circumstances, the ask orders could cascade, leading to another 19% downswing to the second support barrier at $0.00000559.
Market participants should note that only a decisive 4-hour candlestick close below $0.00000890 will confirm this downswing scenario explained above.
SAFEMOON/USDT 4-hour chart
If SafeMoon price fails to slice through $0.00000890, it would invalidate the bearish scenario and give birth to a bullish outlook. In that case, SAFEMOON could blast off 36% to tag the 161.8% Fibonacci extension level at $0.0000122.
