A down-channel breakout has allowed SafeMoon to capture some important gains over the last 48 hours. However, bulls have been hesitant to drive SFM beyond the 38.2% Fibonacci level and there was uncertainty in the breakout. Hence, those wishing to buy SFM should wait for cheaper price levels or bullish developments along some indicators.
SafeMoon 4-hour Chart
SafeMoon achieved a breakout 24 hours ago after forming three consecutive lower highs and lower lows within a down-channel. However, there were some apprehensions in the market. For instance, the breakout occurred on low buy volumes, which meant that the move lacked conviction to push higher. The idea was further reinforced after SFM register a 4-hour red candle before closing above the 38.2% Fibonacci level (calculated from SFM’s decline from $0.0030 to $0.0023). Usually, an asset needs to scale above its 50% Fibonacci level to cement an uptrend.
The picture was not fully clear for SafeMoon going forward. A close below the 23.6% Fibonacci level would drag SFM’s value to 10 January’s swing low of $0.0023. Cracks in SFM’s armor would begin to show if its value slips any further. To alleviate such concerns, it was important for SFM to the zone between its 61.8% and 78.6% Fibonacci levels. For the moment, this zone was the only major resistance in sight.
Indicators
The 4-hour metrics were not a pretty sight. Despite SFM’s breakout, its RSI was yet to establish ground above 50 as sellers were actively rejecting the move. This could further translate into a sell signal on the MACD, which was close to a bearish crossover.
On the other hand, a bullish twin peak setup on the Awesome Oscillator disagreed with the RSI and MACD. The setup indicates rising bullish control and is normally observed prior to an upswing.
Conclusion
SafeMoon’s indicators were not in agreement and it’s best to hold onto your coins for the moment. Start to long once SFM closes above $0.00290 and go short if the price slips below $0.0023.