- SafeMoon price chart illustrates an inverse head-and-shoulders pattern.
- SAFEMOON volume profile underlying the pattern is not textbook.
- Two-hour Relative Strength Index (RSI) does not show an overbought reading, giving room for a breakout to develop.
SafeMoon price declined close to 80% from May 12 to the May 19 low, highlighted by an intra-day decline of 70% on May 19 provoked by Chinese regulatory announcements. SAFEMOON has stabilized on the intra-day charts and just triggered an inverse head-and-shoulders pattern with the promise of a noteworthy rally if the decentralized finance token can generate upside price traction.
SafeMoon price volatility leaves investors gasping for air
For the unaware, SAFEMOON is a new cryptocurrency that began trading in March 2021. The digital token began trading at $0.000000001 and has a tiny market capitalization. SAFEMOON has a maximum supply of 10 quadrillion tokens but only has 600 billion in circulation.
Based on the data provided by Bitsmart going back to April 5, SafeMoon price has been a roller-coaster for the brave investor. The period has seen gains of 2900% and 700%, and losses in the range of 80-90%.
On the two-hour chart, SafeMoon price formed an inverse head-and-shoulders pattern that triggered earlier today before SAFEMOON pulled back into the formation. The construction of the right shoulder has gravitated along the 50 two-hour simple moving average (SMA).
The bottoming pattern has a measured move target of $0.00001066, representing a 93% return from the neckline at breakout. The only two obstacles between SafeMoon price and the measured move target are the 200 two-hour SMA at $0.00000776 and the declining trend line from the May 12 high at $0.00000807.
The 61.8% and 78.6% Fibonacci retracement levels at $0.00000841 and $0.00000999, respectively, may offer minor resistance before SafeMoon price reaches the measured move target of $0.00001066.
The bullish outlook will remain active unless SafeMoon price closes below the right shoulder at $0.00000453.
SAFEMOON/USD 2-hour chart
If SafeMoon price does close below the right shoulder on the two-hour chart, there is no formidable support until $0.00000285 and then $0.00000261. Any further selling would leave SAFEMOON exposed to test $0.00000150.
