SafeMoon (SFM) Confronts Post-Migration Hurdles

In the past week, SafeMoon's price has surged over 25% amid the fluctuations in the broader cryptocurrency market. This impressive spike can be attributed to an increase in demand for the token following its migration from the BNB Chain to the Solana network.

However, current market dynamics indicate that profit-taking and heightened selling pressure might soon negate some of the token's recent gains. Here’s a closer look at the situation.

SafeMoon Faces Intensifying Sell-Offs

Analyzing the SFM/USD one-day chart reveals an alarming trend of increasing selling pressure in SafeMoon's spot markets. A critical indicator of this is the token’s Balance of Power (BoP), which stands at -0.96 as of now.

The BoP indicator compares the strengths of buyers and sellers based on price movement over a specific time frame. A negative value like the current one signifies that sellers are in control, resulting in stronger downward pressure and suggesting that the asset may be undergoing a bearish phase.

This downturn implies that bullish momentum among SFM holders is deteriorating, potentially leading to further declines if the selling pressure persists.

Moreover, SFM's price has dwindled by 8% in the last 24 hours, bringing it close to its 20-day exponential moving average (EMA). This EMA serves as a trend indicator by averaging the asset's price over the previous 20 trading days, giving more significance to recent price trends.

Critical Support Level at $0.000061

If SafeMoon's price breaks below the 20-day EMA, currently at $0.000061, it would likely intensify the bearish trend, with the possibility of further declines to around $0.000047.

On the other hand, a resurgence in demand could counteract this bearish sentiment. Should there be a significant increase in buying interest, SFM may breach the resistance level of $0.000068, paving the way toward its multi-year high of $0.000011.