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Here’s why the Safemoon price has gone parabolic

By:
on May 24, 2023
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  • Safemoon price has doubled in the past few days.
  • The developers unveiled a major upgrade to SafemoonSwap.
  • The new upgrade introduces more features to the swap ecosystem.

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Safemoon (SFM/USD) price jumped to the highest level since May 10 as investors reacted to the latest upgrade to SafemoonSwap. The token jumped to a high of $0.00026, which was more than 100% above the lowest level this month.

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SafemoonSwap upgrade

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It is unclear why the SFM price has doubled in the past few days. The likely reason is that the developers made one of the biggest upgrades to SafemoonSwap. One of the new features is the ability to bridge Safemoo and trade on BNB Chain, Ethereum, and Polygon.

Further, the upgrade introduced the ability to bridge your SFM transaction history and in the SWaP interface. Also, it brought a new DEX user interface that is simple to use. Most importantly, it changed its tokenomics, with fees moving from 10% to just 1%. 

For starters, Safemoon Swap is a decentralized exchange (DEX) that seeks to compete with the likes of Uniswap and PancakeSwap. It makes it possible for users to swap their tokens at a low cost. The exchange also enables users to bridge tokens across three of the biggest chains in the industry. 

SafemoonSwap was created to bring more utility to the Safemoon ecosystem. However, its traction has been substantially low. It is not available in DeFi Llama, which tracks most of DeFi platforms. 

Also, its transaction volume is not tracked by CoinMarketCap, which tracks hundreds of exchanges. The most recent data shows that the most popular DEX platforms are Uniswap, dYdX, Kine Protocol, and Curve.

Safemoon price also jumped as it became one of the top trending tokens in leading platforms like Twitter, StockTwits, and Reddit.

Safemoon price prediction

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SFM chart by TradingView

The 4H chart shows that the SFM price has made a strong comeback in the past few days. This rally was confirmed when the token jumped above the important resistance point at $0.000020, the highest point on May 13. 

Safemoon has jumped above the 25-period and 50-period moving averages and is approaching the important resistance point at $0.00027. Volume has been a bit elevated. 

Therefore, Safemoon price will likely rise and retest $0.00027 and then pull back slightly as it forms the handle section of cup and handle pattern. More upsides will be confirmed when the price moves above the upper part of the cup at $0.00027.

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