We explore if Safemoon has the chance to bounce back after touching a resistance level in 2022
Safemoon is relatively a new cryptocurrency that has managed to make a breakthrough in 2021. Launched in March this year, Safemoon’s price has tagged on to a positive upswing with a promise to ‘reward long-term investors’. Unfortunately, the cryptocurrency is now struggling to keep its pace and value among competitors like Dogecoin and Shiba Inu. As its price is falling to touch a resistance level, we explore the potential of Safemoon to make a comeback in 2022.
Safemoon emerged as an excellent memecoin that opted for uptake in its early days. When more information about the cryptocurrency went online, many discovered more about Safemoon and tried their hand on the futuristic digital token. Safemoon saw a considerate price increase in a concise amount of time after launch. However, Safemoon is not alone as many digital tokens also fulfill their promise in the initial stage. Safemoon is known for its extreme volatility, high transaction fees (10%), and social media hype of memecoins. Similar to Bitcoin and Ethereum, Safemoon is also based on distributed ledger technology. According to the creators, half of the 10% fees is shared among long-term holders while the other half goes to a liquidity pool to stabilize the price of the memecoin. Unlike Dogecoin and Shiba Inu that is making noise out of nothing, Safemoon really has a medium to rely on. Although its higher transaction fees are set to stop investors from trading the digital token often, it is seen as a riskier investment in the crypto world. In this article, we explore to what extend Safemoon can go in 2022.
The Basics of Safemoon
Safemoon is a digital currency that is designed in the same way that Bitcoin and Ethereum functions. Its creators say that the cryptocurrency is designed to address decentralized problems like price volatility and inflation. Safe moon discourages constant sellings by charging a 10% fee on each sale. The aim is to prevent larger falls when big investors choose to sell their coins. Besides, the cryptocurrency also sticks with manual burns over continuous burns to maintain its value. According to Safemoon creators, manual burns give more control over the coin’s supply.
Safemoon is managed by a team of six leaders who roll out new plans to extend its value and adoption. In the first quarter of 2021, the digital token doubled the size of its team and began a marketing campaign. Besides, the company is also aiming to unravel a Safemoon app, a wallet, and games. Safe moon also has plans to build its own exchange platform in the coming years. Since its inception, the cousin now has over 2.9 million holders with a market capitalization of US$1.9 million.
Safemoon’s Upcoming V2 Launch
After winning the ‘Crypto Community of the year’ aways at the AIBC Gaming Summit in Malta, the digital token is all set to get an upgrade called V2. The upgrade is expected to help the memecoin reach its goal of gaining wider adoption and increasing its use cases. It will eventually attract more new investors to try their hand on Safe moon and drive its price to new highs in 2022. After the upgrade was announced, the memecoin has recorded a 6.9% gain. The upgrade comes with features like working on making the digital token seamless, a 2-click consolidation process, a web-swap option, and a QA process.
Disadvantages of Safemoon
Despite the colorful decorations Safmoon provides, its entire purpose is getting people to buy the token and hoping that the value will increase at the selling point. Besides, the Safe moon website also sites some major disruptions like ‘integrating Safemoon with African Markets’ and ‘Project Pheonix’, which are yet to be cashed out. Safemoon’s extremely volatile nature and 10% transaction fees are also a disadvantage. According to experts, there are many tokens out there that assure similar features and make unique promises without any guarantee. Therefore, they think that there is nothing special in Safemoon and its functionalities.
Will Safemoon Emerge as a Major Investment in 2022?
After recording an 85% ascent in the past months, Safe moon is nearing US$0.00000208, its long stood resistance level. According to predictions, Safemoon price will bounce back for a massive move towards the upside as it nears a critical resistance level. If the memecoin manages a 55% upswing to US$0.00000321, Safemoon has the chance to make its comeback in 2022.
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