A previous SafeMoon V2 downtrend was amplified due to the continued correction, with the price dropping 15% in the last 24 hours. Weekly lows on the RSI, MACD and Awesome Oscillator outlined the severity of the downward pressure in the market. With few bullish entries to work with, SFM would likely continue its journey south on the charts. The biggest question was – how low can the SFM go from here?
SafeMoon V2 4 hour period
Devoid of trading flows, the SafeMoon V2 market has steadily lost value, dropping 34% in the last five days. Although its price is parked in a defensive region of $0.001129 to $0.001168, extreme readings in the indicators have worked against even a rally of relief, let alone a prolonged rally.
For example, the SFM RSI has deepened into oversold territory since Feb 19th without any response from bullish traders. The index was currently at its lowest level since SafeMoon's migration from V1 to V2. The Awesome Oscillator and MACD had their problems, each hitting an almost 1-month low. A double bottom setup was still a ways off, meaning the market was open to further losses in the future.
More precisely, the market was vulnerable to a further 23% decline in the future. The $0.000985 and $0.000901 support areas would be the next destination for SFM if the price closes below $0.001168. With no established demand regions on the chart, it is difficult to hunt down a buy at the time of a downturn.
According to the Visible Range profile, there was some demand for SFM within their current defensive zone. However, as highlighted earlier, the indicators have not yet supported the recovery. Therefore, shorting the SFM once it closes below $0.001166 made more sense than any long call. Profits can be fixed at $0.000985, while stop-loss can be held at $0.001541, above the 50-period EMA (orange).
SafeMoon V2 was open to more losses this week. Investors can track short trades based on the aforementioned levels to capitalize on the expected pullback.