- SafeMoon price did not experience the broader crypto spike on Wednesday.
- Selling pressure continues as SFM hits a previously identified short opportunity.
- Further downside movement is likely as buyers continue to avoid SafeMoon.
SafeMoon price action has been a major disappointment for long and short-term hodlers. Persistent selling pressure has placed SafeMoon at risk of creating new three-month lows.
SafeMoon price continues to nosedive, new three month lows increasingly likely
SafeMoon price triggered theoretical a short idea previously identified on March 10, 2022. The setup was a sell stop order at $0.00105, a stop loss at $0.00122, and a profit target at $0.0000071. Support at near the all-time low at $0.000096 was expected, but thus far, sellers appear to be motivated to push new lows.
Unfortunately for SafeMoon price, a reprieve is increasingly unlikely. There are no major gaps between the Tenkan-Sen and the bodies of the 4-hour candlesticks. In other words, a mean reversion higher should not be expected. The Relative Strength Index and the %B oscillators also point to continued bearish price action.
However, there is a Kumo Twist present. Kumo Twists are periods when Senkou Span A crosses Senkou Span B (the Cloud turns red to green or green to red). It is very common to see a swing high or low develop around the period of a Kumo Twist, especially if an instrument has been trending. Despite the Kumo Twists, buyers remain elusive and avoidant.
SFM/USDT 4-hour Ichimoku Kinko Hyo Chart
A close below the 3-month low of $0.000096 could trigger a flash crash down to the $0.000080 value area before any support for SafeMoon price would be found.
If bulls want to mitigate any further downside pressure, they’ll need to push SafeMoon price to a close at or above $0.0010. In that scenario, SFM would close above the Tenkan-Sen, the Kijun-Sen, and return inside the prior falling wedge.
