Safemoon (SFM) price has underperformed in the ongoing memecoin season. This has made many holders to question if it is ever going to pump. In this article we analyze the fundamental reasons behind the weird price action by one of the major memecoins. Safemoon crypto is currently trading 94% below its all-time high.
SFM crypto has remained highly volatile in the past few days but couldn’t gain momentum in either direction. On Thursday, Safemoon price remained sideways as Bitcoin price fell below $29,000 level. Let’s analyze why this OG memecoin has failed to gain any investor attention in this memecoin season.
Why Is Safemoon Not Pumping?
Due to the recent surge in the memecoins, Safemoon crypto holders are waiting for their turn. Our analysis shows that SFM crypto might not be able to generate the astronomical gains that it did in 2021. There are many reasons that back this thesis. The major reason is that the crypto community prefers the new memecoins over the old coins.
This factor is also evident from the recent success and the price surge of Pepe coin which has become the 6th largest within just 5 days of its launch. This his sucked the air out of most of the older memecoins and is one of the major reasons behind boring Safemoon price action. Another reason behind the decrease in popularity of Sfemoon is the recent $8.9 million, which gave the coin a very negative outlook.
Safemoon Price May Drop To New Lows
One of the most painful scenarios for the Safemoon crypo will be another crash from here. Since the start of the year, most altcoins ave shown significant recovery due to the rising BTC price. However, SFM has kept on making lower lows during this time, which shows weakness.
As long as the price remains below the red line on the following chart, Safemoon price prediciton for me will remain bearish. This red line is the 200-day moving average which currently lies at $0.0002568.
I’ll keep sharing my updated price outlook on Safemoon & other memecoins in my free Telegram group, which you’re welcome to join.
