25 Oct 2024 Simon Briggs
SAFE Price Surges Close To 80% After Going Live On Upbit
In news that can be seen as bullish for the entire Ethereum community, Safe's native token, the ownership layer of Web3, has surged nearly 80% following its listing on Upbit. However, the token’s listing on the South Korean cryptocurrency exchange isn’t the only driver of its growth. Spot on Chain, a leading on-chain data provider, has also highlighted a rise in first-time accumulators of the token.
The initial surge following the announcement was 75%, though the token has since retraced and is now trading around the $1.65 mark. Despite this, the token’s market capitalization remains above $760 million, fueling speculation that SAFE could soon reach a $1 billion market cap and potentially secure listings on other tier-1 exchanges.
For now, with Safe’s listing on Upbit, the token is available for trading against BTC, KRW, and USDT. The exchange has also cautioned that deposits and withdrawals made via unsupported networks will not be processed.
SAFE Price Analysis
CoinMarketCap data reveals that SAFE's price has climbed nearly 88% over the past seven days, with the majority of buying activity occurring in the last two days.
That said, the token had been forming an upward channel since mid-September, but only in the past two days did it break out above the channel, exhibiting parabolic price action.
Source: TradingView
The token’s Relative Strength Index (RSI) is deep in the overbought zone, suggesting that a significant correction could occur at any moment. However, if the token holds above the $1.5 level (0.236 fibs), it may attempt to retest the $1.8 mark.
Massive Influx of First-Time SAFE Accumulators Reported by Spot on Chain
Spot on Chain, a leading on-chain data provider, reported that alongside SAFE's listing on Upbit and other prominent exchanges, there’s been a substantial rise in first-time accumulators of the token. The “Top First Time Purchases” chart on the platform over the past three days shows the top five accumulators holding nearly $2.24 million worth of SAFE tokens. Altogether, more than $36 million worth of SAFE tokens have been purchased within just the last three days.
Further bullish news from the SAFE front reveals a 500% surge in SAFE futures open interest, now reaching $7.62 million. Additionally, the derivatives trading volume has seen a parabolic 33% increase, now standing at $14.10 million.
Why is the Sudden Interest in SAFE?
SAFE has enjoyed significant market tailwinds since its debut in May 2024 (according to CoinMarketCap data). While the token has seen more troughs than peaks since then, including hitting an all-time low in August 2024, recent listing news has driven its value back up.
This surge arrives amidst a particularly volatile market, especially for Bitcoin and Ethereum. Bitcoin briefly crossed the $68k mark before retreating to its $67k support, while Ethereum is barely maintaining its position above the $2.5k level.
One factor behind SAFE's rise is its recent listing. Upbit, a South Korean exchange, ranks 12th globally by trading volume and is the largest exchange in South Korea, adding weight to the “listing pump” effect.
Another factor could be an increasing focus on utility tokens. While meme coins dominate short-term gains in the crypto space, long-term investors are gravitating toward projects with solid utility, potentially boosting SAFE’s growth.
What is SAFE?
Safe is described as the ownership layer of Web3, aiming to secure $100 billion. It has two core features: Safe {core}—defined in the project’s official whitepaper as the most secure tooling and infrastructure for integrating a Smart Safe Account—and the Safe Wallet, an official interface designed for both individuals and industries across various sectors, offering a seamless and secure digital asset management experience.
The project currently supports over 15 networks, with a total value locked (TVL) exceeding $100 billion and integrations across more than 200 ecosystems, including Worldcoin and Gnonis Pay.
The addition of 15 networks is a recent development. In a tweet, Safe announced, “Safe (Wallet) goes multichain, enabling gasless deployment with the same address across multiple chains.”
This multichain expansion may be another reason behind SAFE’s significant price surge. Will it sustain this momentum? Only time will tell. For now, the token remains heavily overbought, so unless a new rising channel begins to form around current levels, investors may want to proceed with caution.
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