- Summary:
- The Safemoon price has staged a strong recovery in the past few days as investors go bargain hunting. What is the outlook for SFM?
The Safemoon price has staged a strong recovery in the past few days as investors go bargain hunting. The SFM token is trading at $0.00070, about 156% above the lowest level on May 11th. In addition, its total market cap has moved to more than $388 million, making it the 127th biggest cryptocurrency in the world.
Safemoon is a highly controversial cryptocurrency that came to light during the meme token era in 2021. However, the coin became highly popular as the number of celebrities that endorsed it rose. Some of the most prominent celebrities who endorsed the coin were Jake Paul, the popular YouTuber and Lil Yachty, a rapper.
It has been a controversial coin for several reasons. First, the developers and celebrity backers have been accused of making misleading promotions. Second, they have been sued for performing what is known as a pump and dump scheme. For one, while the website advised people to HODL the coin, it was revealed that insiders were actively selling.
Further, most recently, a group known as Coffeezilla made the case that Safemoon had some gaps. The report said that Safemoon lacked accountability, oversight, and authentic experience. In a recent note, a former insider told Motherboard that:
What we know of SafeMoon mostly is that there’s a lot of questions that need to be answered. And a lot of information that needs to be vetted by a third party, because there seems to be misappropriation of funds.”
Safemoon price prediction
Turning to the 4H chart, we see that the Safemoon price has made a strong recovery in the past few days. The coin is trading at $0.00070, which is a few points below this week’s high of $0.00077. This price is also slightly below the key resistance at $0.00079, which was the highest level on May 12th. The uptrend has been supported by the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved close to the overbought level.
It has moved above the 38.2% Fibonacci retracement level. Therefore, the coin’s upward trend will likely continue as long as it is above the two MAs. If this happens, the next reference level will be at $0.0010, which is 45% above the current level.
