SafeMoon (SFM) Faces Post-Migration Challenges as Sellers Take Over

SafeMoon’s price has climbed over 25% in the past week amid the broader market volatility. This double-digit price gain has been fueled by the uptick in the token’s demand following the project’s migration from BNB Chain to Solana.

However, profit-taking and increased selling pressure are now threatening to erase some of SFM’s recent gains. This analysis provides the details. 

SafeMoon Battles Growing Sell-Offs

An assessment of the SFM/USD one-day chart highlights the growing selling pressure within SFM’s spot markets. A notable indicator of this trend is the token’s negative Balance of Power (BoP), which is at  -0.96 at press time.

SFM BoP. Source: TradingView

An asset’s BoP indicator compares buyers’ and sellers’ strengths by analyzing price movements within a given period. When its value is negative like this, it indicates that sellers have more control, meaning downward pressure is stronger, and the asset is likely experiencing a bearish trend. 

This suggests weakening bullish momentum among SFM holders and hints at declines if selling pressure continues.

Furthermore, SFM’s price has dropped 8% over the past 24 hours, causing the altcoin to trade near its 20-day exponential moving average (EMA).

This moving average measures an asset’s average price over the past 20 trading days, giving more weight to recent prices to identify short-term trends.

SFM 20-Day EMA. Source: TradingView

As with SFM, when an asset’s price is poised to break below the 20-day EMA, it signals increased selling pressure. It is a sign of weakening bullish momentum and a shift toward a bearish trend. 

SFM Finds Key Support at $0.000061

A successful breach of the dynamic support offered by SafeMoon’s 20-day EMA at $0.000061 would strengthen the bearish trend. In this scenario, the altcoin’s price could plummet further to $0.000047.

SFM Price Analysis. Source: TradingView

However, a spike in new demand would invalidate this bearish outlook. If spot inflows rally, it could drive SFM’s price above the resistance at $0.000068 toward its multi-year high at $0.000011.

The post SafeMoon (SFM) Faces Post-Migration Challenges as Sellers Take Over appeared first on BeInCrypto.