SafeMoon (SFM) has experienced extreme volatility in recent weeks, fueled by a major shift toward a community-driven model and a gradual airdrop. This transition helped SFM surge nearly 350% in a month, but technical indicators now suggest that momentum may be fading.
ADX readings show that trend strength has weakened, while RSI has dropped from near-overbought levels, indicating cooling demand. Whether SafeMoon can maintain its uptrend or faces a deeper retracement will depend on whether buying pressure returns or if market enthusiasm starts to wane.
SafeMoon ADX Shows the Uptrend Could be Easing
SafeMoon’s ADX is currently at 20.5, after previously reaching 40 on February 11 and 32 on February 14.
This decline in ADX suggests that while SafeMoon was experiencing strong trend momentum in the last few days, after its gradual airdrop, that strength has since weakened.
The ADX (Average Directional Index) does not indicate trend direction but instead measures the strength of an ongoing trend. A falling ADX in an uptrend can signal that SafeMoon buying momentum is slowing down, making it important to watch whether this trend can sustain itself or if it risks losing steam.
ADX values help determine whether a trend is strong or weak, typically using 25 as the threshold—readings above this level indicate a strong trend, while readings below suggest weaker momentum or consolidation.
With SafeMoon’s ADX now at 20.5, it has dipped below this key threshold, meaning that while SFM is still in an uptrend, the strength of that trend has faded.
If ADX continues to drop, it could suggest that SafeMoon’s rally is running out of momentum, increasing the chances of sideways movement or a potential retracement.
However, if ADX rebounds above 25, it would confirm that buyers are regaining strength, reinforcing the continuation of SafeMoon’s uptrend.
SFM RSI Is Still Neutral, Despite the Recent Surge
SafeMoon RSI is currently at 41, dropping from 67.9 just four days ago. This decline suggests that buying momentum has cooled off significantly after a brief period of strength.
The surge in RSI four days ago coincided with SafeMoon’s announcement that it would launch a Solana meme coin, as part of its transition to a community-driven approach.
This sparked increased buying pressure, pushing RSI close to overbought levels, but the recent drop indicates that the initial excitement has faded, leading to a slowdown in demand.
RSI, or the Relative Strength Index, measures momentum on a 0 to 100 scale, where values above 70 signal overbought conditions and potential for a correction, while below 30 indicates oversold levels and potential for a rebound.
SafeMoon’s RSI at 41 suggests that while the asset has lost some of its recent bullish momentum, it is not yet in deeply oversold territory. If RSI continues falling toward 30, it could indicate that selling pressure is increasing, potentially leading to a further price decline.
However, if it stabilizes and moves back above 50, it would suggest renewed interest in SFM, potentially allowing for another upward push.
SafeMoon Stays Very Volatile
No one knew what would happen with SafeMoon after the SEC and DOJ charged its executives a few years ago.
However, the recent gradual airdrop and shift to a community-driven approach appear to have positively impacted the coin, fueling a massive 153% surge between February 11 and February 15.
If this bullish momentum continues, SafeMoon could soon test $0.00013, with the potential to climb toward $0.00015 or even $0.00020 if demand remains strong.
However, if market attention cools off and enthusiasm fades, SFM could enter a downtrend, leading to a possible retest of $0.000037, marking a significant correction from current levels.
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