Safemoon price suddenly wakes up; can the gains hold?
Safemoon price surged by 76% on Monday, Nov. 25, making it one of the top-performing coins in the industry.
Safemoon (SFM) token rose for the second consecutive day, reaching a high of $0.00002890, its highest level since Nov. 1, and approximately 77% above its monthly low.
The rebound, however, was not supported by significant trading volume, which could signal a red flag. Safemoon’s 24-hour trading volume was just $90,000, a modest figure for a coin with a market cap exceeding $31 million. This low volume may be due to the limited number of exchanges, such as MEXC, Gate, and BitMart, that have listed the token.
The rally may have been spurred by the recent announcement regarding the Safemoon Wallet, now in open beta. The wallet, acquired by The VGX Foundation through a bankruptcy process, features an NFT collections page, a multi-function calculator, a wallet tracker, and a dApp browser.
Safemoon’s price also climbed as investors bought the dip, noting its underperformance during the broader crypto bull run. Bitcoin price is sitting slightly below $100,000 and the crypto fear and greed index has reached the “extreme greed” level of 88.
Historically, tokens from fallen angel cryptocurrencies like Terra Luna Classic, Celsius, and Voyager Digital tend to rise during periods of heightened risk appetite in the industry.
Safemoon price analysis: how high can SFM reach
The SFM token rebounded as it approached the tip of a symmetrical triangle chart pattern forming over the past few months. Typically, assets experience bullish or bearish breakouts when the triangle nears its confluence point.
Safemoon is now attempting to break above the 50-day and 100-day Exponential Moving Averages. The upward trajectory of the Relative Strength Index suggests the token is gaining momentum.
Safemoon’s price will likely remain in its current range as investors await further catalysts. The ongoing rebound could trigger Fear of Missing Out, potentially driving the price to the psychological level of $0.0050. Conversely, a drop below the support at $0.00001618 would invalidate the bullish outlook.
