Safemoon price is having a meltdown. Buy the dip?

The Safemoon price is in a sharp freefall as investors doubt whether the coin will survive the current sell-off. The SFM token has declined in the past seven straight weeks and the situation is getting worse. It is now trading at 0.00030, which is the lowest it has been since January this year. 

Why is SFM is a freefall?

Safemoon was once a high-flying cryptocurrency that was being endorsed by a multitude of celebrities in 2021. The promise was that holders would get rewarded for just holding the coin. These fees were to be generated from the network’s activities.

Safemoon has not lived to the hype as a number of high-profile developers left the organization. With the Terra network imploding, investors now worry that Safemoon could be next. For one, two groups have already launched serious allegations about the network and its creators. They have been accused of running a classic pump and dump scheme. 

Behind the scenes, the developers are attempting to make the project worthwhile. They launched the second version last year which attracted some fame. At the same time, they launched Operation Pheonix which is expected to invest in wind projects in places like Africa. Its wind turbines are being built by a company known as Semtiv.

Still, there is a likelihood that this project will not be successful. For one, wind turbines are extremely expensive equipment and their rollout is not easy. This explains why only a small part of the world economy is currently powered using wind. Moreover, Safemoon does not have all these resources. For one, the total market cap of the coin is currently $185 million.

Safemoon price prediction

The daily chart shows that the SFM price has been in a spectacular sell-off lately. It fell to a low of 0.00029, which was the lowest level since January. It has managed to move below the important support level at 0.00038 USDT, which was the lowest level on May 6th. The coin is still below the short and long-term moving averages.

Therefore, the Safemoon price will likely keep falling as bears target the next key support at 0.00026 USDT.