- Safemoon price has been in a consolidation phase in the past few days.
- It has formed a symmetrical triangle pattern on the 4H chart.
- The SFM coin could be on the cusp of a bearish breakout.
The Safemoon price has been in a consolidation phase as investors wait for the next catalyst. The SFM token is trading at $0.00056, about 43% above the lowest level this week. It has a market cap of over $325 million, making it the 113th biggest cryptocurrency in the world.
What is Safemoon?
Safemoon is a cryptocurrency that was introduced in March 2022. Its popularity surged during the meme coin mania that happened in the first and second quarters of the year. At the time, it became one of the most popular meme coins in the industry.
Safemoon was created to solve the challenges that many existing blockchain platforms had. Some of those challenges dealt with mining and farming rewards and liquidity provisioning.
It also helped solve the challenge of mining, which is often expensive and out of reach to many people. Anyone can participate in Safemoon’s mining directly through their wallet.
Finally, Safemoon Protocol is solving the difficulty of liquidity in decentralized finance (DeFi) protocols. To protect the risk of impermanent loss, Safemoon developed the concept of smart contracts function to automatically capture liquidity to be used in DeFi exchanges. All these features were made possible by the transition from Safemoon V1 to V2.
Learn more about how to buy Safemoon.
Like all other cryptocurrencies, Safemoon price has been in a strong bearish trend in the past few months. Specifically, SFM has dropped by more than 80% from its all-time high.
This decline is mostly because of the ongoing cryptocurrency sell-off. At the same time, there have been concerns about Safemoon itself. A few months ago, an online crypto investigator warned that Safemoon was likely a pyramid scheme.
The crisis continued as several important members of the organization stepped down. They included the platform’s Chief Technology Officer, Charles Karony, and Ryan Arriaga. It was also reported that all members of the executive team had abandoned their roles. At the same time, the number of token contracts in Safemoon has been in a downward trend.
Safemoon price prediction
The four-hour chart shows that the SFM price has been in a consolidation phase in the past few days. Along the way, the coin has formed a symmetrical triangle pattern that is shown in black. It is also consolidating along the 25-day and 50-day moving averages while the Average True Range (ATR) has fallen to the lowest level in months.
Therefore, with Safemoon’s triangle pattern nearing its confluence level, there is a likelihood that the coin will soon have a bearish breakout to $0.00040. Still, the performance will depend on the overall price action of other cryptocurrencies.
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