SAFE Crypto Up 76% in 24 Hours: Will Breakout Lead to $2.37?

• SAFE surged 76% in 24 hours, breaking out of a multi-month downtrend with strong volume.
• Social dominance has risen sharply, but overbought indicators and price divergence suggest caution.

safe [SAFE] surged, breaking free from its multi-month downtrend to skyrocket over 76% in just 24 hours. At press time, SAFE was trading at $1.66, indicating a significant increase in investor confidence.

Additionally, the market cap increased by 76.69%, pushing its value to $770.48 million. Trading volume jumped a staggering 9981.24%, indicating high interest in the token's recent performance.

These statistics highlight the strength behind the current breakout. However, traders are now asking if the safe can sustain this rapid growth or if a pullback is a looming back.

Breaking the Downtrend: What's Next?

Safe has been in a long, drawn-out downtrend, caught in a descending channel since earlier this year. However, price has now broken out of this structure, signaling a bullish reversal.

Currently, SAFE is above $1.63, a key level that previously served as resistance. Therefore, this level is now the main support that traders will watch closely.

The next major hurdle is $2.37, a strong resistance level that SAFE needs to cross to continue its rally. A break above this point would indicate further upside potential. Furthermore, holding the $1.63 level will ensure that the bulls are still in control.

Source: TradingView

Technical indicators: RSI and MACD flash alerts

While the breakout is promising, several technical indicators suggest caution going forward. The Relative Strength Index (RSI) currently sits at 78.63, placing it in overbought territory.

Therefore, SAFE may be due for a period of consolidation or even a short-term pullback.

Furthermore, MACD has entered bullish territory, its signal line confirming continued momentum. However, the strength of the wave could mean a possible cooling off before the next upward leg.

Source: TradingView

Price DAA divergence

Price DAA Divergence reveals a 15.32% gap between SAFE's price growth and its network activity. While prices have increased significantly, daily active addresses have not increased proportionately.

Deviations indicate that price movements may be speculative, driven by short-term traders rather than consistent network growth. This calls for caution, as a lack of organic network activity can sometimes cause price correction

Source: Sandhi

Secure social dominance spikes

Social dominance rose to 2.204%, a substantial increase from its previous level. Additionally, this spike highlights that SAFE is gaining significant attention on social media platforms, often a sign of increased volatility and price action.

However, sharp rises in social dominance do not always translate into sustained growth and may indicate short-lived speculative interest.

Source: Sandhi

Is the safe ready to hit $2.37?

Given the strong volume growth and clear breakout from the multi-month downtrend, SAFE will likely hit the $2.37 resistance level soon.

Despite overbought conditions, bullish momentum remains intact, supported by heightened social interest and technical indicators. Therefore, unless a major pullback occurs, SAFE is well positioned to test the $2.37 mark in the near term.