SafeMoon is one of the latest entrants and fastest-growing altcoins this year.
The coin launched in March 2021, and already, over 2.5 million investors have purchased it. Despite this enthusiasm among investors, the cryptos price is still stuck at a fraction of a cent.
Since it launched, some skeptics have wondered whether SafeMoon is a sound investment and whether its price can rise to $1 by the year 2025.
Despite the skepticism in some quarters, the cryptos price prospects have grown after the El Salvador government revealed that it plans to make Bitcoin a legal tender. This announcement signaled that governments are beginning to open up to the idea of cryptocurrencies.
What is SafeMoon?
SafeMoon is a DeFi project that is based on the Binance blockchain. Former Pentagon analyst, John Karony, is one of the team’s leaders.
Unlike some other crypto projects that encourage day trading bets, this one tries to encourage long-term investments. As such, if an investor sells one coin, the transaction is charged a 10 per transaction levy.
Half of the transaction fee is shared to the investors who own coins. This is similar to a company paying dividends to its shareholders. The other half of the fee is invested back into the project.
While the transaction fee creates passive income for holders, it is also put in place as a mechanism to ensure SafeMoon’s price remains relatively stable.
SafeMoon also does token burns. These burns are designed to reduce the coin’s supply. The thinking behind this idea is less supply, and increased demand, would help lift the crypto’s price.
SafeMoon Market Valuation
SafeMoon launched in March 2021, and its launch price was $0.000000001. With more marketing and awareness after its launch, it has a bullish rally to the price of $0.0000015 by the beginning of April. It then doubled in price to $0.0000029 by mid-April.
This bullish rally continued to hit a new time high of $0.00001375. By April 20, the prices had increased by a whopping 1,374,900%.
If you had invested $1000 when SafeMoon launched, your investment would have been worth $13.75 million by April. SafeMoon had a bearish retracement to a price of $0.000001385 in September.
To date, the digital coin has been ranging at 0.000004. At the time of writing, SafeMoon was trading at $0.000005, with a market cap of $ 2.9 billion. It trades at a daily trading volume of $21 million with a maximum coin supply of quadrillion SafeMoon tokens.
SafeMoon Strategies of Pushing The Token Prices Up
SafeMoon Encourages Holding to Push The Prices Up
The name SafeMoon comes from the phrase “to the moon” that describes holding a Crypto as the prices rise. The SafeMoon protocol rewards the SafeMoon holders extra tokens. This is to encourage them to continue holding the coin.
According to SafeMoons official website, the SafeMoon protocol has three functions: reflection, liquidity pool (LP) acquisition, and burn. The traded volume reflects the SafeMoon coins held. When more investors hold the coin, they will get more tokens increasing the traded volume. An increase in traded volumes will tend to increase the prices of the SafeMoon.
Selling SafeMoon also incurs a 10% fee. Safemooon distributes the fee as a reward to the existing holders. This strategy aims to stabilize the coin prices and increase the market volume when people are selling.
With time, these two strategies will ensure more volume of SafeMoon with stable and increasing prices.
Burning SafeMoon Token to Increase the Prices
The developers of SafeMoon are manually burning the SafeMoon to reduce the number of tokens in circulation while maintaining the prices. They have successfully burnt over 400 trillion tokens. SafeMoon is currently trading at a market Cap volume of $2.9 billion and has about quadrillion SafeMoon tokens in circulation.
Because the developers are regularly burning the tokens, the amount of SafeMoon in circulation might be less than 500 trillion in future, and the market cap will increase. If we have 500 trillion tokens in circulation at the current market price, the prices will increase from the current price by 100%. So with these frequent burns, we expect the prices to be bullish.
SafeMoon app attract investor interest and push prices up
In September 2021, SafeMoon developers launched an IOS and Android app to aid in the buying of SafeMoon tokens. By October 17, the app had more than 350 000 downloads. The app acts as a wallet and a platform to get the SafeMoon tokens. Also, You can swap ether, BNB coins, and BSC coins in the app.
This app increases the ease of SafeMoon tokens adoption in the market. More adoption means increased market volume increase in token prices. Recent updates of the app have caused SafeMoon prices to trend.
SafeMoon Price Technical Analysis
Short Term Analysis
According to CoinGecko charts, the SafeMoon prices are retracing after having a bullish rally that began on 30th October from the $ 0.00000442. This price point acts as an essential support level since, on 29th October, the price retraced to that price point before going bullish to the $0.00000654 price level, which was the high of October.
So the price might retrace to that support level before collecting more contracts and move to break the October high. If the price goes bearish below the $0.00000442 support level, it might bounce off the $0.00000400 level, which is a psychological level or at the $0.00000300, which is both a support level and a psychological level.
However, since the $0.00000442 support level has held price twice, we would expect that the price would react to the level and go bullish.
Long Term Analysis
Alt text: long term Chart showing SafeMoon’s resistance and support levels
According to the CoinGecko charts, the price has already broken four resistance levels and one psychological level during its recent bullish rally. The psychological level was at $0.000005, and the resistance levels were $0.00000366, $0.00000458, $0.00000517, and the $0.00000599 price levels.
These resistance levels now become support levels to which the price can retrace before continuing with the bullish rally. Since the price is trading around $0.000005 at the time of writing, we are expecting the $0.00000333,
$0.00000366, or $0.00000458 before continuing with a long term trend bullish. Currently, the price seems to be accumulating around the 50% retracement Fibonacci level. Since SafeMoon launch, it has attained a high of $0.00001375. A 50% retracement is $0.000006875.
This is a very strong level for prices to gain more energy and continue with the bullish rally.
Can SafeMoon Price Reach $1 by 2025?
At the time of writing, SafeMoon is trading at $0.000005. Reaching $1 is a percentage increase of 19999900%. For SafeMoon to trade at $1 by 2025, it should increase by almost 4000000% every year.
Since SafeMoon launched to date, it has had an average monthly gain of 120000%. If it maintains this monthly growth rate, it could trade $1 by the end of 2023.
Is SafeMoon a Good Investment?
The early investors of SafeMoon had a 1,374,900% increase in their investment by April. Although the price has retraced by 70%, the early investors are still enjoying profitable investments.
But is buying the SafeMoon now a sound investment? SafeMoon developers have a great strategy to maintain a steady and bullish price of SafeMoon. If their plans work, they will attract more investors with time and increase the market volume of SafeMoon. This will push the prices up.
Also, SafeMoon has other future projects like the SafeMoons video game projects and a SafeMoon crypto exchange platform. This will also attract more investments and drive the prices up. If the above predictions work, SafeMoon is a sound long-term investment to be in.