Safemoon price is up by less than a percentage point in today’s trading session following a week of disappointment that had seen it drop by more than 30 per cent. Today’s positive gains also come amidst a reckoning of the cryptocurrency industry following last week’s collapse of the second-largest crypto exchange, which has caused uncertainty in the markets.
Despite last week’s drop, Safemoon has continued to show resilience in the markets and currently looks like it will recover in the long run. Part of the reason for this week’s price stability has been its emphasis on long-term investments. Unlike other cryptocurrency projects, Safemoon was built with the goal of awarding its long-term holders. They achieve this by charging a 10 per cent fee to sellers. The transaction fee charged is then shared equally with existing Safemoon holders, with the other half going into the liquidity pool, which also helps the project maintain price stability.
Investors of Safemoon are, in most cases, also confident of a comeback due to the project’s deflationary policies that reduce the number of tokens in circulation. Therefore, with demand remaining the same, reduced tokens always mean the prices of safemoon will go up, which in most cases is a net positive for investors.
The Chart below shows Safemoon price trading relatively stable following a week that saw its value dropping by more than 30 per cent. The chart also shows a high likelihood of intraday trading, resulting in continued price gains throughout the session. The Safemoon price is also above the $0.00027 support level and showing signs of continued price gains.
Therefore, I expect to see Safemoon continue to rise in the next few trading sessions, barring another FTX-esque event. There is a high likelihood that prices will be trading above the $0.00031 resistance level in the coming trading sessions. However, a trade below $0.00025 price level will invalidate my bullish analysis.
This post was last modified on %s = human-readable time difference 13:36