Tech

What Does The Falling Wedge Pattern Mean For SFP?

12/09/2022
Bitcoin Ethereum News

Join Our Telegram channel to stay up to date on breaking news coverage

The global crypto market cap has fallen to 750 million dollars, with decentralized exchange (DEX) tokens witnessing bids following the collapse of centralized FTX exchange. SafePal price (SFP) recorded a 180% rally in November while the total market cap fell by 25%.

During the third trading week of November, SFP price witnessed a stark rally, setting a monthly high of $0.81. Towards the end of November, approximately two weeks post the FTX bankruptcy filing, the SFP price had gained almost 42% within the same period, to trade at the $0.51 range.

Ranked #147 on CoinMarketCap, the SafePal ecosystem has a live market cap of almost $155.8 million, almost 3x what was recorded in late November, and a 24-hour trading volume of $29.6 million, up by 151.6% from yesterday. In recent days, the SFP price has also been flashing green, which can be attributed to the just concluded airdrop. 

The airdrop was a massive campaign for both new and existing users in the SFP ecosystem with 1,000,000 $SFP in the ecosystem up for grabs, according to a medium announcement. 

Now, as the Christmas holidays approach, the decentralized wallet and SFP token price hovers at $0.46, 70% above the origin point of its stunning rally in November.

SFP Price Rides On User Interest In SafePal’s Self-Custodial Crypto Wallet

SafePal is a cryptocurrency wallet offering a secure and user-friendly crypto management platform. The ecosystem provides both hardware wallet and software wallet product lines, which are paired and managed through the SafePal App, and users can easily store, manage, swap, trade, and grow their crypto wealth. Notably, SafePal’s crypto wallet supports 15 different languages and 54 blockchains and as of the time of this writing, serves over 7 million users globally.

The recent uptick in SFP price comes in light of market fears following the FTX crisis that has seen crypto holders lose trust in centralized exchanges (CEXs). The company saw increased web traffic and recorded high sales of its hardware wallet, which is backed by Binance exchange and sells for $49.99. Besides the strong backing, SFP altcoin also boasts strong fundamentals and other technical aspects that support its sturdy performance.

Notably, non-custodial platforms gain traction amidst increased hacks and rug pulls. In the same way, as the FTX implosion situation continued to spread, and with rising fears among investors, SafePal price made more gains. According to SafePal CEO Veronica Wong:

“The recent FTX situation has taught the industry an important lesson about decentralization and transparency. As more people realize the importance of taking full control of their assets, SafePal will become one of the major web3 gateways for the crypto masses.”

Reportedly, almost 1 million FTX customers could have been spared from severe impact, had the exchange been a non-custodial platform. Moreover, almost $500 billion was siphoned on November 10, just before FTX and its corporate sibling Alameda Research filed for Chapter 11 bankruptcy protection.

After the FTX blowup, crypto wallet SafePal achieved record signups pointing to crypto investors quickly turning to self-custody for digital asset safekeeping. 

SafePal Price Prepares For A 15% Upward Move

SFP price set a swing high at $0.855 following the collapse of crypto exchange FTX which appeared to have sparked increased interest in self-custodY crypto wallets which give users direct ownership of their coins. This was followed by a two-week sell-off as the SafePal price corrected to lows around $0.415. 

The crypto custody token then attempted a recovery on December 1 that was halted at the $0.49 resistance level. Over the next few days, SFP recorded a series of lower highs and lower lows eventually dropping below the 50-day simple moving average (SMA) earlier this week.

This price action has formed a falling wedge pattern on the daily chart (below), hinting at a significant upward breakout. This technical chart pattern is considered a significantly bullish reversal pattern which is confirmed when the price breaks above the upper trend line. 

From the chart below, it can be seen that the falling wedge chart pattern was confirmed when the SafePal token price escaped from the formation on Thursday, confirming and bullish breakout. The profit target of a falling wedge is measured by adding the maximum distance between the upper and lower trend lines to the breakout point.

In SFP’s case, shattering the resistance provided by the wedge’s upper trendline around $0.453, embraced by the 50-day SMA opens the way to a 19% rise.

SFP/USD Daily Chart

SafePal Price Chart
TradingView Chart: SFP/USD

That places the price target at $0.538 if measured from the current price of $0.466. This brings the total gains to 15.81% from the current price. On the contrary, if the price turns down after testing the $0.4747 resistance level, it may continue to fluctuate within the range of the governing chart pattern with its target getting lower and lower.

More bullish cues for SafePal price came from a growing positive divergence between its price and the momentum indicator.  To put this into perspective, SFP’s recent downtrend, as outlined by the falling wedge, was accompanied by an upside retracement in its Stochastic RSI readings, a momentum oscillator that is used to tell the strength of the trend and to show whether an asset is oversold or overbought.

The scenario, referred to as a bullish divergence as shown on the chart (above), suggests that bears are losing control and that bulls are ready to take enter the market again. The price strength at 55 was an indication that there were slightly more buyers than sellers in the market, adding credence to the bullish thesis.

Also validating the token’s upward outlook was the SuperTrend indicator which was still bullish when it reversed from red to green and flipped below the price on November 13. Like moving averages, the indicator overlays the chart while tracking the SFP price trend. It incorporates the average true range (ATR) in its computations, which helps gauge market volatility. As long as the SuperTrend is green and stays below the price, buyers are likely to remain in an advantageous position

SFP’s Downside Risks Are Not Over

Despite the bullish divergence from the Stochastic RSI, it was still positioned in the neutral territory at 55 and the moving averages were also flattening, an indication that the price was consolidating and could move in either direction. In addition, the SafePal token was trading in red at the time of writing, implying that the bears were determined to take control of the price and push it lower. 

Moreover, market conditions and the uncertainties in the macro environment add credence to SFP’s downside. These include high inflation rates and the negative impact of the Federal reserve’s tightening stance on riskier assets, including cryptos and equities that has been going on for the better part of 2022.

Therefore, if the SafePal price turns away from the current level, it would drop first to the 50-day SMA currently sitting at $0.45, and later to the support provided by the SuperTrend green line and the 100-day SMA at $0.415.

In highly bearish cases, the SFP price may drop lower to tag the 200-day SMA at $0.391. Market participants could expect the sell-off to stop here, giving late investors a chance to buy SafePal at a discount before another attempt at recovery is made.

Benefit from the recent market dip with these cryptocurrencies

Many investors in the crypto market are looking for the next big thing in cryptocurrency. While there are many contenders for the title “most promising altcoin,” Calvaria and IMPT are the ones to watch this month and into 2023.

IMPT.io (IMPT)

From the latest reports, the presale of the IMPT project has already raised almost $15 million. This follows a move by early investors to flock and purchase the IMPT altcoin at cheaper prices before it lists on exchanges in seven days and the price goes higher. The sale is due to end on December 11, which is just under five days, after which IMPT token will be listed on Uniswap, LBANK Exchange and Changelly Pro. 

Just within the presale stage, IMPT is already making headlines, so much so that renowned financial and technological companies like Adobe, among others, have made steps to introduce goods and services on the soon-to-launch Shopping Platform from IMPT. 

The non-fungible token (NFT) market presented by the IMPT.io project is even more intriguing.  It will let consumers print their distinctive digital collectibles.  When users regularly shop with affiliate brands, they earn carbon credits.  Courtesy of IMPT, these carbon credits will also be tradable on the blockchain at all times

Notably, crypto has changed the financial world significantly, but we cannot overlook the harm it has caused to the environment. Cognizant of this fact, the IMPT project aims to increase the efficiency of the carbon credit market. 

The IMPT pre-sale is moving on well with over $15 million raised and investors actively coming on board. In the same way, the awareness of the project is increasing. Now is the best time to buy in and take advantage of this project by engaging in its presale and ecosystem. 

Calvaria (RIA)

Calvaria is an exciting new game project with the potential to explode this December and into the coming year. Investors have already spotted the opportunity here, which explains the increasing level of attention and engagement the project continues to get, even on social media platforms.

Calvaria has caught the eyes of investors and gamers alike as the RIA altcoin is looking to draw both conventional and crypto gamers. Moreover, Calvaria will provide free-to-play and play-to-earn (P2E) gaming.

The project has also announced plans to give users immediate access to royalty revenues generated from the subsequent trades of their NFT-powered card collections. With this, the users will easily have access to actual products and services. Beyond that, RIA holders will also enjoy staking privileges, which will be an enabler to passive income earning from the platform.

Now in the final 5th stage of the presale, Calvaria has raised $2.36m with only 28% of tokens left. The last opportunity to purchase with a huge discount, do not let anything make you miss out!

Read More:

Dash 2 Trade – High Potential Presale

Dash 2 Trade
  • Active Presale Live Now – dash2trade.com
  • Native Token of Crypto Signals Ecosystem
  • KYC Verified & Audited

Dash 2 Trade


Join Our Telegram channel to stay up to date on breaking news coverage

Source: https://insidebitcoins.com/news/safepal-price-prediction-what-does-the-falling-wedge-pattern-mean-for-sfp