- Safemoon price remains locked in a descending channel formation on the four-hour chart, weighed down by the overall market.
- Absence of the Fear of Missing Out (FOMO) in rookie tokens keeps attraction to SAFEMOON bounded.
- Frictionless yield bug invites vulnerability to the digital asset, raising the risk of token holders losing their funds.
SafeMoon price evolution since May 25 has tested the patience of bullish speculators. The rookie token has not commanded sustainable buying pressure; instead, it is locked in a relentless descending channel, offering brief, swing trade opportunities. Until SAFEMOON can release from the channel, there is a return of trust in the broader cryptocurrency complex and a reignition of FOMO in new cryptocurrencies; it will carry a bearish tilt.
SafeMoon price cannot find clarity in a market lacking trust
Launched on March 21 with a SafeMoon price of $0.0000000010, the relatively new cryptocurrency reached $0.00001500 on April 20, rewarding the first adopters with an astronomical return. The magnitude and speed of the advance captured headlines, lifting the number of users to over one million.
The SAFEMOON market capitalization currently rests at $2.37 billion, ranking it #203 in the cryptocurrency rankings with over 585 trillion tokens in circulation, based on CoinMarketCap data. It is relatively inexpensive compared to most digital assets allowing investors to amass positions in the millions of SAFEMOON.
SAFEMOON developers can burn tokens manually with the logic that a smaller supply will drive up the price. In the protocol whitepaper, SAFEMOON states that it “aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term.”
SAFEMOON is not listed on the major cryptocurrency exchanges, so enthusiastic investors need to access it on the decentralized PancakeSwap exchange.
Currently, SafeMoon price is resting in a descending channel as the broader cryptocurrency dominated by a lack of trust seeks direction and searches for a catalyst, whether bullish or bearish. The lack of direction is manifested in the number of triangle patterns on the charts, whether it is a symmetrical, ascending or descending version. For sure, a catalyst is not far off, but SAFEMOON will not be motivated to move higher without a more robust market.
A breakout above the channel’s upper boundary at $0.00000452 will clear SafeMoon price from the May 11 declining trend line at $0.00000435 and put SAFEMOON on course to test the 38.2% retracement of the May correction at $0.00000620.
The 200 four-hour SMA at $0.00000662 will be an epic confrontation, considering that it resisted the rebound attempt from the May 19 low. It would still represent an almost 50% gain from the channel’s upper boundary as of today.
Ambitious SAFEMOON investors should target the 50% retracement at $0.00000731 and then the 61.8% retracement at $0.00000841, which aligns with considerable price congestion gathered from May 6 to May 18.
SAFEMOON/USD 4-hour chart
After tagging the all-time high at $0.00001500 on April 20, SafeMoon price collapsed 90% as FOMO exited the building. Based on that experience, investors need to be prepared for the downside.
A four-hour close below the channel’s lower boundary at $0.00000306 would alert investors to anticipate a test of the May 23 low at $0.00000285 and the May 19 low at $0.00000261, leaving a 35% decline for the undisciplined market operators.
SafeMoon price may be impacted by the discovery of vulnerability
Pera Finance announced a critical vulnerability with more than 100 projects in a recently published medium article, including the much-hyped digital asset SAFEMOON. These projects, including FEG Token BSC, Pig Finance, Kishu Inu, CateCoin and more, forked the gasless holder yield smart contract created by Reflect Finance and forked the holder yield bug as well. The contract owner can use the bug, and if used, “a certain amount of tokens from the balances of all users are instantly transferred out, causing them to lose their funds.”
We have discovered a bug in the smart contracts of more than 100 projects with the frictionless yield feature. It may cause holders to lose their funds. You can read the details from our latest articlehttps://t.co/2bbx0Y9GxI
️Stay safe! ️#SAFEMOON #ReflectFinance #DeFi #BSC
— Pera Finance (@PeraFinance) June 1, 2021