Safemoon price increased by 76% on Monday, November 25, making it one of the top-performing coins in the industry.
Safemoon token (SFM) rose for the second day in a row, hitting a high of $0.00002890, its highest level since November 1, and about 77% above its monthly low.
However, the rally was not supported by significant trading volume, which could indicate a red flag. Safemoon's 24-hour trading volume was just $90,000, a modest figure for a coin with a market cap of over $31 million. This low volume may be due to the limited number of exchanges, such as MEXC, Gate, and BitMart, that have listed the token.
The rally may have been fueled by the recent announcement about Safemoon Wallet, now in open beta. The wallet, acquired by the VGX Foundation through bankruptcy proceedings, features an nft collections page, a multi-function calculator, a wallet tracker, and a dApp browser.
Safemoon's price also rose as investors bought the dip, noting its underperformance during the broader cryptocurrency bull run. The price of bitcoin is slightly below $100,000 and the cryptocurrency fear and greed index has reached the “extreme greed” level of 88.
Historically, fallen angel cryptocurrency tokens like Terra Luna Classic, Celsius, and Voyager Digital tend to rise during periods of increased risk appetite in the industry.
Safemoon Price Analysis: How Far Can SFM Go?
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The SFM token rallied as it approached the tip of a symmetrical triangle chart pattern that formed in recent months. Typically, assets experience bullish or bearish breakouts as the triangle approaches its confluence point.
Safemoon is now attempting to break above the 50-day and 100-day exponential moving averages. The upward trajectory of the Relative Strength Index suggests that the token is gaining momentum.
Safemoon price is likely to remain in its current range as investors wait for more catalysts. The ongoing bounce could trigger fear of missing out, which could push the price to the psychological level of $0.0050. On the contrary, a drop below the $0.00001618 support would invalidate the bullish outlook.
