Safemoon price suddenly wakes up; can the gains hold?

Safemoon price increased by 76% on Monday, November 25, making it one of the best-performing cryptocurrencies in the industry.

Safemoon (SFM) token rose for the second day in a row, reaching $0.00002890, its highest since November 1 and nearly 77% above its monthly low.

However, the recovery was not supported by significant trading volume, which could signal a red flag. Safemoon’s 24-hour trading volume was only $90,000; This is a modest figure for a cryptocurrency with a market capitalization of over $31 million. This low volume may be due to the limited number of exchanges such as MEXC, Gate and BitMart that list the token.

The rise may have been spurred by the recent announcement regarding the Safemoon Wallet, which is currently in open beta. The wallet, which was purchased by the VGX Foundation through the bankruptcy process, includes an NFT collection page, a multi-function calculator, a wallet tracker and a dApp browser.

Safemoon’s price also rose as investors bought the dip and highlighted its underperformance during the broader crypto bull run. Bitcoin price is hovering just below $100,000 and the crypto fear and greed index has reached the “extreme greed” level of 88.

Historically, tokens of fallen angel cryptocurrencies such as Terra Luna Classic, Celsius, and Voyager Digital tend to rise during periods of increased risk appetite in the industry.

Safemoon price analysis: How high can SFM reach the Safemoon price chart? Source: crypto.news

The SFM token has rebounded as it nears the end of the symmetrical triangle chart pattern that has formed over the past few months. Typically, assets trend upward or downward as they approach the confluence of the triangle.

Safemoon is currently trying to break above the 50-day and 100-day Exponential Moving Averages. The upward trend of the Relative Strength Index indicates that the token is gaining momentum.

Safemoon’s price will likely remain within its current range as investors await further catalysts. The ongoing recovery could trigger Fear of Missing Out and potentially push the price towards the psychological level of $0.0050. Conversely, a decline below the $0.00001618 support would invalidate the bullish view.