Bull run on the horizon as price challenges 50 EMA

Trading well below its 200-period Exponential Moving Average, SafeMoon might not be an attractive choice for those wishing to make a quick buck. Mid-long term investors have also felt the brunt of broader market sell-offs between October to mid-December. Within this period, SAFEMOON’s value declined by nearly 90%. While Bitcoin has started to look favorable once again, the same could not be said for SAFEMOON just yet.

The alt was yet to break out from a bearish pattern which has been active over the last two weeks. However, a key breakout above the 50-EMA would change SAFEMOON’s outlook and lead to a 42% spike.

SAFEMOON 4-hour time frame

December has been a mixed month for SAFEMOON. While the alt registered a 120% hike after the broader market crash on 3 December, momentum has dissipated. A persistent down-channel was active over the last two weeks which threatened to overturn all the progress SAFEMOON has made recently. Even though rallies of 30%, 20% and 12% were observed on 15, 18 and 23 December, the 50-EMA (yellow) has been a tough nut to crack.

This mid-term Exponential Moving Average has served as an exit point for any short-term rallies that have emerged since mid-December. However, an interesting change was about to take place.

Indicators

The 4-hour RSI and MACD have been forming higher lows recently. This suggested that bulls were slowly gaining strength in the market. Should SAFEMOON finally close above its 50-SMA, it would need to overcome 12 December’s swing high of $0.00000174 to force an upwards breakout. From there, another 20% ascent was possible to $0.0000020 and the 200-EMA (green). Short-sellers would be taken out of the picture once SAFEMOON cements its position above the 200 EMA.

However, keep in mind that a lot of uncertainties were still present. The RSI was yet to enter bullish territory while the MACD flashed bearish readings. The MACD has been unable to recover above its mid-line for nearly two months now, often encountering resistance right at the halfway mark. Should SAFEMOON fail to overcome its 50-EMA (yellow) and slip below its 20-EMA (red), another low can be expected at $0.00000102.

However, this move would be a blessing in disguise for those awaiting a lucrative buy opportunity. The aforementioned price level has triggered massive rallies since 2018 and is a reliable defensive resource.

Conclusion

The 50-EMA is key to SAFEMOON’s short-mid term trajectory. A close above this moving average and $0.00000174-resistance, a 20% hike could follow suit. In case SAFEMOON declines below its 20-SMA (red), observers can place buy entries at a long serving support line at $0.00000102.