SafeMoon Plunges 8% on Solana Network as Selling Pressure Intensifies

SafeMoon, a cryptocurrency that recently transitioned to the Solana network, has experienced significant price volatility and increased selling pressure. Following its migration from the BNB Chain to Solana, SafeMoon initially saw a surge of over 25%, attracting the attention of traders. However, the subsequent selling pressure has raised concerns among investors.

The SFM/USD daily chart reveals a troubling trend with a negative Balance of Power (BoP) at -0.96, indicating that sellers currently dominate the market. The BoP is a critical indicator that compares the strengths of buyers versus sellers by evaluating price movements within specific time frames. A negative BoP suggests enhanced control by sellers, leading to stronger downward pressure on SFM’s price. This trend demonstrates diminished bullish momentum among SFM holders, signaling potential declines if the trend persists.

Concurrently, SFM has recorded an 8% price decline over the last 24 hours, bringing it close to its 20-day exponential moving average (EMA). The EMA is essential in identifying short-term price trends, leveraging more recent pricing data. When an asset’s price approaches and potentially breaches the 20-day EMA, it signals increasing selling pressure and suggests a shifting trend from bullish to bearish, which is currently evident in SFM’s price action.

SafeMoon now faces crucial price points, where the 20-day EMA functions as dynamic support at $0.000061. A break below this level could catalyze further downward movement, potentially dragging prices down to as low as $0.000047. However, any signs of renewed demand or bullish sentiment could provide SFM with the necessary momentum to assess resistance at $0.000068, possibly paving the path toward reclaiming its multi-year high at $0.000011 in the longer term.

The current market sentiment surrounding SafeMoon depicts a cautious outlook. As investors weigh their options, the balance between profit-taking and new buying interest will be pivotal in determining SFM’s short-term performance. Key levels to watch include the support at $0.000061 and resistance at $0.000068. The successful navigation of these price points will shape the token’s trajectory in the coming weeks.

In summary, SafeMoon’s recent migration to the