SafeMoon SFM Price Drops 8% Amid Selling Pressure

SafeMoon (SFM) has recently faced significant challenges following its migration from BNB Chain to Solana. The token's price had climbed over 25% in the past week, driven by increased demand due to the migration. However, this upward trend is now threatened by profit-taking and increased selling pressure, which could erase some of SFM's recent gains.

An analysis of the SFM/USD one-day chart reveals growing selling pressure within SFM's spot markets. The token's negative Balance of Power (BoP) indicator, which stands at -0.96, suggests that sellers have more control, indicating a bearish trend. This weakening bullish momentum among SFM holders hints at potential 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. When an asset’s price is poised to break below the 20-day EMA, it signals increased selling pressure and a shift toward a bearish trend.

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. 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.