SafeMoon price needs to advance 35% to avoid bearish fate

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SafeMoon price is in a tough spot despite its two-week uptrend. While a bearish outlook is staring at SAFEMOON, it can be sidestepped if the bulls push the altcoin higher. 

SafeMoon price at inflection point

SafeMoon price rose roughly 80% to where it currently stands, $0.00000179. This run-up resulted from the breakout from a rising wedge pattern that formed between September 5 and September 28. 

Now, SafeMoon price has produced a lower high with respect to the swing point on September 5. The Relative Strength Index (RSI), however, has formed a higher high within the same period. This fork between the price and the RSI is called a bearish divergence.

Often, this setup leads to a correction. Therefore, SafeMoon price is, generally speaking, up for a retracement. However, investors need to note that if the bulls manage to propel SAFEMOON by more than 35% and produce a decisive close above $0.00000239, it will create a higher high, eliminating the short-term bearish outlook.

Therefore, SafeMoon price has to produce a swing point higher than $0.00000239 to escape the pessimistic fate. If the buyers fail to do so, SafeMoon price will likely retrace 27% to the immediate support level at $0.00000142. Here, SAFEMOON can give the uptrend another try.

SAFEMOON/USDT 1-day chart

SAFEMOON/USDT 1-day chart

On the other hand, if SafeMoon price breaches the $0.00000142 support barrier, it will pull back 22% to the last line of defense at $0.00000109 or the September 28 swing low. 

A decisive close below this barrier will invalidate the bullish thesis and trigger a downswing to $0.00000612.

Source: https://www.fxstreet.com

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