SafeMoon has produced a wicked amount of volatility the past week for traders who are able to find the cryptocurrency on available exchanges and a host of broker platforms. While SafeMoon continues to be largely traded against other cryptocurrencies only, the value of the digital asset here is paired against the USD to give it a barometer that is easier to understand.
In the past week of trading, SafeMoon has seen its value nearly double and reached its apex on the 8th of August, but since then has seen value erode as sellers likely cashed out profits. Technically, SafeMoon has returned to the lower edges of its price range, but traders participating within the cryptocurrency are practicing a high degree of ‘blind faith’ and outright betting with SafeMoon.
The rise and fall of values via SafeMoon is a speculative game that traders should acknowledge carries plenty of risk. However, for traders who like the volatility and know how to speculate with a limited amount of their portfolio, this endeavor actually may make some sense. Stop loss ratios should be used when possible to guard against spikes which are a common feature of the cryptocurrency, but a trader with a solid game plan may find SafeMoon a rather intriguing potential bet.
If a speculator can purchase SafeMoon on their trading platform or an exchange and hold onto the cryptocurrency and not suffer from bizarre transaction fees, there is an argument to be made for buying the asset as a pure wager. Traders who can manage their risk percentages, and have clear parameters regarding the amount of money they are willing to lose if things go against them, may want to buy SafeMoon on downturns near perceived technical lows.
Simply put, a trader buying SafeMoon must accept this is a speculative adventure. However, based on the hopes of reversals higher, which could develop correlated to the broad cryptocurrency market, pursuing SafeMoon with a limited amount of risk capital at stake could prove to be worthwhile. Traders who pursue SafeMoon need to understand the dynamic nature of this new cryptocurrency and that its value is based on fractional percent of less than a cent.
SafeMoon Short-Term Outlook:
Current Resistance: 0.000002422
Current Support: 0.000002195
High Target: 0.0000028750
Low Target: 0.000002068
