God candle forms on SAFE chart following Upbit listing, correction ahead?

Safe Wallet’s native token, SAFE, has surged 72% in the last day after it was listed on Upbit and its wallet went multi-chain.

Safe (SAFE) rose 115% from its September low to $1.65 after “god candle” pushed the token from $0.94 to $1.70, increasing its market cap to $805 million. Despite this recent rise, SAFE remains 53.6% below its all-time high of $3.56 reached in April.

SAFE’s price increase occurred in a high-volume environment. Daily trading volume rose 425% to more than $114 million, much higher than the $4 million seen on the morning of October 24.

The main driving force behind the recent rise was the listing of the token on South Korea’s largest cryptocurrency exchange Upbit on October 24 and the introduction of trading pairs for the token in Korean Won (KRW), Bitcoin (BTC), and Tether (USDT).

Listing on a major cryptocurrency exchange like Upbit often leads to an increase in the price of the listed asset as it provides access to a new market where increased buying interest from new investors can push the price even higher.

According to an Oct. 24 post from on-chain analytics platform Spot On Chain, there has been an increase in wallets purchasing SAFE since Upbit’s listing. The top five first-time buyers alone purchased 1.356 million SAFE ($2.24 million) from OKX, Bybit, and Uniswap, making a total of $150,000.

Additionally, Safe Wallet’s recent move to a multi-chain environment has also increased momentum by increasing availability across 15+ networks. Users can now enjoy a unified wallet experience with a single distribution, a consistent address across chains, and gas-free transactions across large Layer 2 networks; this may have contributed to increased demand for SAFE.

Price correction expected

It is worth noting that despite the recent rise in SAFE’s price, such rallies following listing on the stock exchange often face reversals as investors sell to secure profits.

One of the community members pointed out a similar situation with Crypto Academic, Injective’s token (INJ); Injective token (INJ) rose after the Upbit listing and saw a sharp decline the next day. Crypto Academic warned that INJ, as a stronger altcoin, still faces significant profit taking and suggested that SAFE could face a similar outcome.

Technical indicators also point to a possible pullback in SAFE’s price; Because at the time of writing this article, the Relative Strength Index was at 78 and well above the overbought threshold, above the upper Bollinger Band.

SAFE price, Bollinger Bands and RSI chart | Source: TradingView

In case of a trend reversal, the altcoin will likely find support at $0.9992, which is aligned with the middle Bollinger Band on the 1-day SAFE/USDT price chart.