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.

According to a recent report, crypto exchanges in Iran are showing increasing usage and outflows. More Iranians are turning to crypto to transfer assets out of the country.

Iran is a minor hub in the global crypto community. It is a consistent locale for cheap mining and an ally of Russia’s pro-crypto proposals at the BRICS Summit. Crypto-based capital flight may encourage the government to take a harsher view of the industry.

Crypto Can Pull Assets Out of Iran

Although it is often overlooked in the crypto space, Iran is a meaningful player on the world stage. For one, it’s a hub of cheap mining, as the government legalized the industry despite causing intermittent disruptions to the power grid.

According to a new report, however, private citizens are also using it to facilitate capital flight.

“For many Iranians, cryptocurrency represents an alternative financial system, and the increasing use of Iranian crypto exchanges suggests that more individuals and institutions are resorting to crypto to safeguard wealth. A closer examination of these outflows suggests they are driven by a pressing need to move funds out of the country,” Chainalysis claimed.

The US sanctions regime plays a large part in this decision. Sanctioned governments have repeatedly turned to crypto as a way to make cross-border payments effectively, and Russia has been a particular leader in the field.

At the most recent BRICS Summit, it strongly encouraged member nations to use crypto, and Iran’s delegation backed many of these statements.

However, this pattern of capital flight flies in the face of Iran’s friendlier crypto policies. Private citizens are flocking to domestic exchanges, but immediately transferring their assets to more secure foreign businesses.

Last December, the Iranian government cracked down on domestic exchanges, furthering pressure to move assets abroad.

In other words, although the Iranian government has been reasonably accepting of cryptocurrency, citizens are using it to pull out. The nation’s economy is creaking under high inflation, and tensions with the US are only fueling this panic. The report claims that outflows peaked during missile exchanges between Iran and Israel, which also impacted crypto prices.

As far as global crypto adoption goes, these statistics from Iran are somewhat mixed. On one hand, it’s a clear use case for decentralized finance, showing how people can take control of their economic future through blockchain.

On the other hand, capital flight will hardly encourage the government to promote mining or adopt crypto, as Russia has. Overall, the situation demands further observation.

The crypto market has sharply declined over the past 24 hours, with its total market capitalization dropping by $32 billion.

However, despite the broader downturn, some altcoins have defied the trend and attracted strong investor interest. Among Wednesday’s trending altcoins are Story (IP), Sonic (S), and Bittensor (TAO).

Story (IP)

Story (IP) is a trending altcoin today, maintaining its upward trajectory despite the broader market drawdown. On Tuesday, it ranked as the market’s top gainer, soaring over 20% and outperforming other leading assets. IP is trading at $2.42 at press time, noting a 20% price surge over the past 24 hours.

Its Chaikin Money Flow (CMF) assessed on a four-hour chart confirms the strengthening demand for the altcoin. As of this writing, it is in an uptrend at 0.20. The CMF indicator measures how funds flow into and out of an asset. When its value is above zero, there is a high capital inflow as buying activity exceeds selloffs.

If IP’s buying pressure remains strong, its price could revisit its all-time high of $3. 

However, if market participants begin to sell their IP tokens, the price could plummet to $1.44.

Sonic (prev. FTM) (S)

Sonic (S), formerly known as Fantom (FTM), is another altcoin trending today. It has also bucked the general market trend, climbing by 10% in the past 24 hours. At press time, S is at $0.65, its highest since January 25.

Readings from the S/USD one-day chart reveal that the altcoin has traded above an ascending trendline since February 8. This pattern is formed when an asset’s price consistently makes higher lows, connecting at least two or more upward-sloping support points. It is a bullish trend, suggesting sustained buying pressure and potential for further price appreciation.

If S’ demand rockets, its price could reach  $0.76.

On the other hand, if the bullish momentum weakens, the price could drop below the ascending trend line to $0.50.

Bittensor (TAO)

Artificial intelligence-based token Bittensor (TAO) is one of the most searched altcoins today. It is currently valued at $398.80, noting a 9% price surge over the past day. 

An assessment of its bull/bear power confirms that its buyers dominate its spot markets. This is reflected by its Elder-Ray Index, which has returned a positive value for the first time this week. 

This index measures the strength of bulls and bears in the market. When its value is positive, it means bulls are in control. This signals strong buying pressure in the TAO market and hints at the potential for further upside.

If the uptrend persists, TAO could climb to $452.20.

Conversely, its price could fall to $355.80 if traders begin to sell.