Safemoon’s price has plunged sharply as investors doubt whether the token can withstand the current sell-off. SFM has declined for seven consecutive weeks, and the situation continues to deteriorate. It is currently trading around $0.00030, the lowest level since January of this year.
Why is SFM in a downtrend?
Once a widely talked-about cryptocurrency, Safemoon gained significant attention in 2021, including endorsements from several celebrities. Holders were promised rewards simply for keeping the token, with fees generated by network activity intended to fund those distributions.
Those expectations have not materialized. Several senior developers left the project, undermining confidence. In the wake of the Terra collapse, investors fear Safemoon could be vulnerable as well. Two groups have already leveled serious allegations against the network and its founders, accusing them of running a classic “pump and dump” scheme.
Behind the scenes, the team has made attempts to revive the project. Last year they launched a second version of the protocol that briefly attracted attention. At the same time, the team announced an initiative called “Phoenix” aimed at investing in wind-energy projects in regions such as Africa. The plan involves deploying wind turbines built by a company named Semtiv.
However, that plan faces substantial challenges. Wind turbines are expensive and complex to deploy, which helps explain why only a limited share of the global economy is currently powered by wind. Safemoon lacks the capital and infrastructure necessary for large-scale energy investments: the token’s total market capitalization is roughly $185 million at present, a modest figure for ambitious renewable-energy projects.
Safemoon price outlook
On the daily chart, SFM has been in a pronounced sell-off. The token recently dropped to $0.00029, the lowest level since January, and broke below a key support area at $0.00038—the low recorded on May 6. SFM remains trading beneath both short- and long-term moving averages, indicating sustained bearish momentum.
Given these technical conditions, Safemoon’s price is likely to face further downside as bears target the next critical support near $0.00026. Until the token can reclaim major support levels and move back above its moving averages, the risk of continued weakness remains elevated.