Bitcoin’s resurgence to $36,500 on Tuesday gave altcoins some breathing room after last week’s massive sell-off. As a result, SafeMoon V2 entered a period of consolidation and awaited further signals before makings its next move on the chart. At the time of writing, SFM traded at $0.001870, down by 0.2% over the last 24 hours.
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SafeMoon V2 Hourly Time Frame
Over the last three days, SafeMoon V2’s price has oscillated between a tight channel of $0.001886-$0.001773. A constricted Bollinger Bands showed that market volatility has remained low following SFM’s 26% decline between 21-22 January. As a result, SFM’s buildup was expected to continue over the near term as buyers and sellers contest for market control.
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Although SFM’s price swing would largely depend on which side enforces a breakout, SFM was amidst a larger downtrend and sellers had an edge heading forward. A close below SFM’s current channel would drag its price to its 29 December low of $0.001661. Since this region triggered a massive bull run last year, buyers were expected to hold strong until selling pressure fizzles out.
On the other hand, buyers would come out on top with a close above $0.001886. The move would prep SFM for another 8% ascent to $0.002023. If buy volumes remain consistent, SFM can even target a swift comeback to $0.002404-resistance. In either case, a full 30% run-up would need to be backed by a bullish broader market.
Conclusion
SafeMoon V2’s consolidation would continue until sellers force a close below $0.001773. While traders can sell on resistance and buy on support, placing bets in a rangebound market is not advised and a safer call would be to wait for a breakout. On the other hand, bulls faced an uphill task to regain market control. However, a close above $0.001886 would beckon a few optimistic arguments.