SafeMoon Price Dips: Sell-Off Threatens Recent Gains

SafeMoon Price Dips: Sell-Off Threatens Recent Gains

SafeMoon (SFM) experienced a significant price increase of over 25% last week, mirroring broader market volatility. This rally followed the project's migration from BNB Chain to Solana. However, profit-taking and increased selling pressure are now jeopardizing these gains.

Growing Sell-Offs in SafeMoon

Analysis of the SFM/USD daily chart reveals a concerning increase in selling pressure. The Balance of Power (BoP) indicator stands at -0.96, indicating stronger seller control. A negative BoP suggests a bearish trend, where sellers outweigh buyers.

SFM BoP. Source: TradingView

Further evidence of weakening bullish momentum is the 8% drop in SFM's price over the past 24 hours. The price is now near its 20-day exponential moving average (EMA), a key indicator of short-term trends. A break below the 20-day EMA often signals increased selling pressure and a potential shift to a bearish trend.

SFM 20-Day EMA. Source: TradingView

Key Support Level at $0.000061

If SFM breaks below its 20-day EMA support at $0.000061, the bearish trend could strengthen. This could potentially lead to a further price drop to $0.000047. However, a surge in demand could reverse this trend. A price increase above the resistance at $0.000068 could push SFM towards its multi-year high.

SFM Price Analysis. Source: TradingView

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile. Conduct your own research before making any investment decisions.

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