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Safemoon Is Heating Up, Looks Ready To Break Out Again

SafeMoon (CRYPTO:SAFEMOON) is a newer cryptocurrency that has caught the eye of many altcoin investors.

Safemoon is a crypto that adds liquidity into multiple pools used by exchanges. SafeMoon is an interesting concept for a crypto, as when someone sells, 10% is taken from the seller. This 10% is then split and 5% is burned never to be seen again, and the other 5% is distributed evenly among the rest of the shareholders.

Safemoon was up 57% at $0.000009 at last check. Below is a technical analysis of the chart.

safemoondaily5-6-21.png

Safemoon Daily Chart Analysis

  • Safemoon looks to have broken out of what technical traders may call a falling wedge pattern.
  • The crypto is trading above both the 50-day moving average (green) and this is an area that may hold as support in the future.
  • The crypto is trading above the 9-day exponential moving average (blue). Safemoon trading above both of these moving averages indicates the cryptocurrency has been trading with bullish sentiment recently.

Key Levels To Watch

  • The falling wedge pattern is a bullish reversal pattern, and Safemoon looks to be breaking out of the pattern and moving higher Thursday.
  • One thing to take note of is that when Safemoon broke out last time, it saw increasing volume into the breakout. Safemoon has been seeing increasing volume into what could be the start of another breakout.

What’s Next For Safemoon?

Bullish technical traders would like to see the breakout happen and see Safemoon reach new highs. If the breakout were to happen, likely there would be a period of consolidation before another breakout may be possible.

Bearish technical traders would like to see Safemoon be unable to hold its gains. If Safemoon were to fall to where it was before the breakout, it may see a further push down.