- SafeMoon has completed 5 Clear Pulse Waves Down.
- Its next retracement target is 50% above the current price.
- A break below $0.00106 will invalidate the bullish thesis.
SafeMoon’s price development shows potential for price increases of up to 50%. The altcoin is currently fluctuating 20% above the all-time low of $0.00106.
The SafeMoon price linked to a big move
According to Elliot wave theory, impulse waves, which come in 5 waves, are followed by 3 corrective wave patterns. Since the all-time high of $0.003 was hit on January 5, it is relatively easy to identify five impulse waves to the all-time low on January 4.
Another rule known to Elliot Wave analysts is that corrections usually go back to the 4th wave of a previous degree. The 4th wave is currently in the $0.0016-$0.0018 area, 50% off the current price.
SafeMoon Daily Chart
Buying the countertrend is very risky, given the power of the bears on the price of SafeMoon. It is essential to remember that a double bottom is a very likely scenario for the digital asset.
Since SafeMoon bulls are only supported by a definite bottom, being an early buyer is not advised. The best way to approach this trade is to place a buy stop above the current SafeMoon consolidation.
Bullish thesis invalidation lies 17% below the current price at the all-time low of $0.00106. If the bulls cannot set up a double bottom as support, then future SafeMoon price targets could be quite harsh. The bears would likely send SafeMoon price between $0.0001 and $0.0002, a potential drop of 80% from the current price.