The Safemoon price has moved sideways in the past few days after it crashed to a multi-month low of $0.00027. The SFM coin’s price is about 38% below last week’s high of $0.00078. It has a market cap of over $262 million. So, what next for the SFM price as the challenges in the cryptocurrencies industry continue?
Safemoon is a cryptocurrency that was launched at the height of the meme coin boom. The coin was heavily promoted by some of the biggest celebrities like Jake Paul and Lil Yachty. It was pitched as the next-generation cryptocurrency that would reward its holders whenever people used it to make payments.
Recently, however, Safemoon has not lived to its hype. For one, the Safemoon price has crashed by over 80% from its all-time high and its market cap falling to just $262 million. Some initial buyers like Dave Portnoy have called it the worst purchase of their lives. At the same time, the founders have been accused of running a pump and dump scheme. Coffeezilla has continued to publish videos critical of the network. Now, with the collapse of Terra LUNA, there are concerns that Safemoon could be next.
Safemoon price prediction
On the 4H chart, we see that the SFM price declined sharply last week as the crypto meltdown continues. At the time, the coin’s price crashed to a low of 0.00027, which was its lowest level since last year. Now, it has moved slightly above the 25-day moving average. The Relative Strength Index (RSI) has also moved to the neutral level.
A closer look at the chart shows that it has a close resemblance to other digital coins that have been in a consolidation mode recently. Therefore, its price will be dictated by the movement of the other coins. If the recovery phase continues, the coin’s price will retest the important resistance at 0.0006. On the other hand, a drop below the support at 0.00040 will invalidate the bullish view.