- SafeMoon price maintained downtrends since 2022’s first week but presents a possible reversal sign.
- Bullish divergence shows SAFEMOON prepared for a 100% rally towards the nearest resistance zone around $0.000962.
- A daily candle closing beneath $0.000357 will print a lower low and cancel the SAFEMOON’s bullish thesis.
SafeMoon Price sustained a downward move for over four months and presents signals of possible recoveries. According to the daily chart, the altcoin develops a bullish pattern that might catalyze reversals for SAFEMOON.
SafeMoon to Go 180
SAFEMOON has been plunging since 6 January, losing approximately 88%. The alternative token formed equal lows near the $0.000357 mark amid massive bearishness.
That indicated the token forming a potential base, hinting at a possible reversal for SafeMoon. The bullish divergence adds credence to this narrative as it predicts an optimistic outcome.
A bullish divergence emerges when the token’s price prints lower lows while the Relative Strength Index forms higher lows. The formation shows increasing bullish momentum regardless of the near-term price drop in SAFEMOON.
Thus, enthusiasts should prepare for a swift reversal that sees SafeMoon price retesting the closest resistance barrier near $0.000962. This upward move would mean an approximately 100% return for SafeMoon holders. The resistance will likely cap further upside by the token.
While things appear lucrative for SAFEMOON price actions, the bearish market sentiment might ruin the highlighted bullish signs.
That can see the alt producing a daily candlestick closing beneath $0.000357, creating a lower low and annulling the optimistic narrative for SafeMoon price. Such developments could mean continued lows by SAFEMOON until the token register new lows.
Moreover, SafeMoon will rely on the overall market structure for its coming price trends. While writing this content, the global cryptocurrency market cap reflects dominant bearishness in the space. This metric dropped more than 3.89% within the previous day to $1.52 trillion.
Also, Bitcoin weakened further within the past day, surrendering 3.62% of its price to $33,414.28. The leading crypto seems vulnerable to further declines. Such developments will see the alt market deteriorating, potentially ruining recovery sentiments in altcoins, including SAFEMOON.
You can share your thoughts in the comment area below.