- Safemoon has been in a consolidation phase in the past few weeks.
- It has formed a head and shoulders pattern on the 4H chart.
Safemoon price remained in a consolidation phase in the past few weeks as concerns about the cryptocurrency industry continued. The SFM coin was trading at $0.00027 on Friday, where it has been in the past few days. This price is about 25% above the lowest level this month, giving it a market cap of over $150 million.
Is Safemoon a good buy?
Safemoon is a blockchain project in the Decentralised Finance (DeFi) industry. It was highly hyped coin that was designed for long-term investments. It achieves that by charging higher transaction fees of 10%, with half of these funds going to the coin’s holders.
Safemoon is a highly controversial project. Some analysts have even compared it to a ponzi scheme. The developers and some of their promoters have been sued by some of investors who lost money following its hyped launch.
Safemoon has stayed out of the limelight for a while. The most recent Safemon news was the launch of non-flat fee tokens that run on multiple decentralized exchanges. It named this service the Safemoon Tokenomics Supervisor.
Find out how to invest in Safemoon.
According to the statement, the product was launched to resolve some of the challenges that existed in its own decentralized exchange known as Safemoon SWaP. It partnered with Dr. Adel ElMessiry to create the advisor that has two steps: token registration and token swap. As the tokens swap, the supervisor checks and loads the fees against the registration requirements and manages corrections.
The impact of the token advisor is that it will free up additional access for token partner listings. Still, Safemoon faces several challenges. First, there is the challenge of trust since the network has been associated with fraud.
Second, the level of activity in Safemoon is relatively low compared to other blockchains. Finally, it is unclear when the hyped SafeMoon Card will be launched. It as been promoted for more than a year now.
Safemoon price forecast
The four-hour chart shows that the SFM price has been in a consolidation phase in the past few weeks. It is consolidating at the 25-day and 50-day moving averages. The coin has moved slightly above the important support at $0.00024, which was the lowest point this week and in October.
Safemoon price has also formed a head and shoulders pattern. Therefore, the path of the least resistance is lower since the H&S is usually a bearish sign. If this happens, the next key support level to watch will be at $0.0002.
