SafeMoon is positioning towards a favorable week of trade after consolidating close to a support zone over the last 48 hours. A double bottom on the Awesome Oscillator and a bullish crossover on the MACD threw weight behind an optimistic outlook as well.
SafeMoon V2 4-hour time frame
SafeMoon did not have the best weekend after coughing up losses on the back of a symmetrical triangle breakdown. A long 4-hour red candle accounted for a 7% decline in a single session, after which SFM shifted to a support zone between $0.002382-$0.002330. Since then, SFM has consolidated as selling momentum dropped off from exchanges.
Moving forward, the introduction of new longs at SFM’s support zone could trigger a massive rally. A move above the 50-EMA (blue) would announce an 8% run-up to 12 January’s swing high to $0.002752 (50% Fib), from where $0.002958 (78.6% Fib) would be targeted. Once a double top at $0.003111 is successfully negotiated, a new ATH can be expected at the 161.8% Fibonacci Extension around $0.003555 if buy volumes remain consistent above $0.003111. Overall, the move represented a 50% hike from SFM’s press-time level.
However, bears can invalidate the outlook by forming a new low below $0.002330. This outcome would likely see SFM establish a new area of support around $0.2210 and its 200-EMA (green).
Indicators
SFM’s outlook was preserved by a bullish crossover on the MACD and a double bottom on the Awesome Oscillator. Both setups are normally observed prior to an upward price swing. However, keep in mind that buy orders should be set up once each indicator recovers above its respective half-line.
Meanwhile, the RSI lamented in bearish territory but the creation of higher lows suggested that bulls were making inroads to a recovery. Additional buying pressure would enter the market once SFM’s RSI can safely progress above 55.
Conclusion
The current week is expected to be bullish for SafeMoon as long as it holds above $0.002330. A highly optimistic outcome might even see SFM surge by 50% and set a new ATH at its 161.8% Fibonacci Extension.