The cryptocurrency Safe [SAFE] has experienced a remarkable surge, breaking free from a prolonged downtrend and skyrocketing by over 76% in just 24 hours. Presently, SAFE is being traded at $1.66, showcasing a substantial rise in investor confidence.
Furthermore, the market capitalization has witnessed a surge of 76.69%, propelling its valuation to $770.48 million. The trading volume has also seen a remarkable increase of 9981.24%, indicating a significant upsurge in interest in the token’s recent performance.
These statistics underscore the robustness behind the current breakout. Nonetheless, traders are now pondering on whether Safe can sustain this rapid growth or if a potential pullback is on the horizon.
Breaking the Downtrend: What Comes Next?
Safe has been ensnared in a lengthy downtrend, ensnared in a descending channel since earlier this year. Nevertheless, the price has now broken out of this pattern, signaling a bullish reversal.
At present, SAFE maintains a position above $1.63, a crucial level that previously served as a resistance point. Consequently, this level now functions as the primary support that traders will scrutinize closely.
The next significant barrier is positioned at $2.37, representing a formidable resistance level that SAFE must surpass to prolong its upward momentum. A breakthrough at this juncture would signify even greater upside potential. In addition, maintaining the $1.63 threshold would confirm the dominance of the bulls.
Technical Indicators: RSI and MACD Advise Caution
Although the breakout appears promising, multiple technical indicators counsel prudence moving forward. The Relative Strength Index (RSI) presently registers at 78.63, positioning it within overbought territory.
Hence, SAFE might be due for a consolidation phase or even a brief retraction.
Furthermore, the MACD has transitioned to a bullish zone, with the signal line affirming a sustained momentum. However, the surge’s intensity could indicate a temporary tapering prior to the subsequent upward movement.
Price DAA Divergence
The Price DAA Divergence discloses a 15.32% variance between SAFE’s price upsurge and its network activity. Despite the significant price increase, the number of daily active addresses has not surged proportionally.
This disparity implies that the price shift might be speculative, instigated by short-term traders rather than stable network expansion. Therefore, vigilance is advised, as a lack of authentic network activity sometimes results in price corrections.
Surge in SAFE Social Dominance
The social dominance has escalated to 2.204%, marking a notable surge from previous levels. Furthermore, this spike emphasizes that SAFE is garnering substantial attention on social platforms, often indicating increased volatility and price fluctuations.
However, rapid spikes in social dominance do not invariably translate into sustainable growth and could signify transient speculative interest.
Is SAFE En Route to Attain $2.37?
Given the substantial surge in volume and the evident breakout from the extended downtrend, SAFE is likely to breach the $2.37 resistance level in the foreseeable future.
The bullish momentum remains consistent, supported by heightened social engagement and technical indicators, despite the overbought conditions. Thus, unless a major retracement materializes, SAFE is well-positioned to test the $2.37 milestone shortly.