- SafeMoon price has sold off roughly 30% in September alone.
- SFM price is due for a short move up as the RSI has been trading deeply in oversold.
- Expect to see a possible return to $0.0003200 before price action starts tanking again.
SafeMoon (SFM) price has had a rough ride this September. At the beginning of the month SFM price tried to trade above the 55-day Simple Moving Average (SMA), situated at $0.0004227 at the time. Unfortunately, price action failed to vault this hurdle and slid lower towards $0.0002716, the low of May. Since then it has been reluctant to fall all the way to those lows. The reason: the Relative Strength Index (RSI) has been trading in oversold territory for too long and is due for a small turnaround.
SFM price due for a small decompression
SafeMoon price has not many reasons to rally higher extensively as tail risks are only getting larger and increasing by the day as geopolitics shake up the markets yet again. Since the beginning of September, SFM price action has been in free-fall and does not look to recover anytime soon. As with every asset class in the markets, sooner or later, some paring back of losses is likely to happen – a de-tensioning of the elastic band pulling SafeMoon price down.
SFM price will probably be seen popping higher, helped by Fed comments if it sticks to a 75 bps rate hike, and mentions that it is starting to see significant slowdowns in the economy that will help build the case for smaller rate hikes. On the back of that headline, SFM price could rally towards $0.0003200. That would translate into a 7% gain for the trading day, which, seeing its performance in September, would not be that bad.
SFM/USD Daily chart
Should the Fed come out more hawkish than expected, however, and follow the move of the Riksbank at the beginning of this week, expect to see a massive wave of more dollar strength come into the markets, triggering a deep sell-off of everything against the greenback, including cryptocurrencies. That would see, although the RSI is in oversold territory, SFM price drop towards $0.0002716. In percentages, that means another devaluation of roughly 8% intraday with the risk that more downside will come when price action closes below that level.