God candle forms on SAFE chart following Upbit listing, correction ahead?

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As a seasoned analyst with years of experience navigating the tumultuous waters of the cryptocurrency market, I must admit that the recent surge of SAFE, the native token of Safe Wallet, has piqued my interest. The 72% spike over the last day, following its listing on Upbit and the shift to a multichain environment, is undeniably impressive. However, as history has shown us, such rallies often face a reversal as investors sell to lock in profits.

Over the past day, SAFE, the indigenous token for Safe Wallet, experienced a notable increase of 72%, following its successful listing on Upbit and the expansion of its wallet to support multiple blockchains.

As an analyst, I’m observing a significant jump in the price of SAFE, reaching $1.65 – a 115% increase from its September low. This surge was fueled by what is known as a “god candle,” which catapulted the token from $0.94 to $1.70 in a single candlestick formation. Consequently, SAFE’s market capitalization has swelled to an impressive $805 million. However, it’s important to note that despite this recent rally, SAFE is still 53.6% below its all-time high of $3.56, a level it reached back in April.

On that day, the price surge of SAFE happened amidst a bustling market setting. Compared to the $4 million traded in the early hours of October 24, its daily trading volume skyrocketed to an impressive $114 million, representing a significant increase of 425%.

The primary reason for the token’s recent surge in value was its listing on Upbit, South Korea’s largest cryptocurrency exchange, which took place on October 24. This event introduced trading pairs for the token in Korean Won (KRW), Bitcoin (BTC), and Tether (USDT).

Listing an asset on a prominent cryptocurrency platform such as Upbit frequently triggers a rise in the asset’s value due to the exposure to a novel market. This exposure can stimulate greater purchasing interest among new investors, potentially causing the price to escalate.

Based on a post by Spot On Chain on October 24th, there has been an increase in wallets purchasing the cryptocurrency SAFE since it was listed on Upbit. The top five initial buyers have collectively purchased approximately 1.356 million SAFE ($2.24 million) from exchanges such as OKX, Bybit, and Uniswap, earning a total of $150,000 in the process.

Additionally, Safe Wallet’s transition to a multichain setup has not only gained traction but also improved usability over 15 different networks. This means users can now savor a uniform wallet experience with just one deployment, a consistent address across various chains, and zero-cost transactions on prominent Layer 2 networks. Such features might have stimulated the growing interest in SAFE.

Price correction expected

It’s important to remember that when SAFE’s price increases lately, it’s common for such gains to occur after an exchange listing. However, these spikes often lead to a decrease as investors choose to cash out and secure their earnings.

A user named Crypto Academic highlighted a comparable scenario involving Injective’s token (INJ). Following its listing on Upbit, INJ surged significantly but plummeted the next day. Crypto Academic warned that, as a robust altcoin, INJ encountered considerable profit-taking, implying there’s a chance SAFE might encounter a similar situation.

Based on technical analysis, indicators seem to point towards a possible decrease in SAFE’s price. This is due to the fact that its value surpassed the upper Bollinger Band when last observed, and the Relative Strength Index stood at 78, significantly exceeding the overbought level.

If there’s a change in direction for the altcoin, it’s probable that it will encounter resistance near the $0.9992 mark, which coincides with the midpoint of the Bollinger Band on the 1-day SAFE/USDT price graph.

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2024-10-25 13:25