SafeMoon V2’s price looked worse for wear after yesterday’s drop but recovery seems to be underway. Its 4-hour chart recorded ‘three white soldiers’ – a powerful reversal pattern that normally forms before a price hike. With Bitcoin trading above the $40K mark and SafeMoon’s social score still relevant, it’s certainly interesting to see where SFM will land up going forward.
SafeMoon V2 4-hour Chart
A few sessions ago, SafeMoon V2’s chart was agonizingly painful for bullish traders. A large red candle on the lesser time frame highlighted a 22.7% decline in a single session, threatening a greater sell-off in the sessions to come. Has the situation become better now? Not exactly, but bulls have taken a step in the right direction.
Two green candles proceeded right after the said decline and it seems as if investors were changing their outlook on SafeMoon V2. At press time, the price had already recouped by 10%. Additionally, it’s quite possible that more retail traders would jump on board should a third green candle fully develop.
Traders who earn their bread and butter through technical analysis are always on the lookout for reversal patterns during corrections. One such sign of a reversal occurs when the price logs three large green candles in a row immediately after a correction, popularly known as ‘three white soldiers’ among trading circles.
SafeMoon x eSports?
Before getting into why and how to trade the pattern, it was important to look at whether SafeMoon’s social media presence could generate more value for its near-term price. A post shared by SafeMoonWarrior suggested that the project could be looking at eSports partnerships as a means to expand the ecosystem.
Naturally, it sparked a discussion among community members but the same SafeMoon’s social volume was not outstanding, ticking up by just 2% during the day. Hence, SFM’s recovery seemed to be more in line with broader market changes than hype trading.
Price Strategy
SafeMoon’s social score is slightly better than average and a bullish pattern has formed. This tells one that the market is good for a long setup, but take-profits had to be tight since an extended recovery was uncertain. To be more specific, an entry can be made at $0.0010034 and take-profits can be set at $0.0010812 Stop-loss can be kept at $0.0009485. The trade setup carries a 1.39 risk/reward ratio.