- SAFEMOON and its promoters faced a class-action lawsuit due to misleading and false statements to investors.
- The lawsuit stated celebrity endorsements overestimated market demand, pumping SAFEMOON price higher before investors discarded the tokens.
- Analysts trust the altcoin will extend its downside, forecasting more pain.
SafeMoon promoters and the project face a class action charge criticizing a pump-dump approach by marketers. The alternative coin recorded 22% declines within the previous week. Meanwhile, analysts forecast further downward actions.
SafeMoon Suffers Plunges, More Pain for Bulls
SafeMoon’s price witnessed massive downswings after the 17 February class-action lawsuit. That had the alternative coin registering 22.7% losses within the past seven days. The case stated that SafeMoon promoters mislead investors and sell assets to unsuspecting traders in pump and dump schemes.
The lawsuit claimed marketers used celebrity endorsements to pump SAFEMOON prices higher. After the token price skyrocketed in response to the strategy, promotors dumped the assets on unsuspecting traders, misleading them.
The lawsuit defendants are SafeMoon CEO John Karony, COO Jack Haines-Davis, Henry Wyatt, Shaun Witriol, and Ryan Arriaga. Meanwhile, involved celebrities are Soulja Boy, Ben Phillips, and YouTuber Jake Paul.
Proponents trust that the suit contributes to the current downbeat mode by SafeMoon price. FXStreet experts analyzed SAFEMOON price action, noting that the alt halted its bullish breakout. Analysts observed a violated Head-Shoulders’ neckline after support weakened. Such developments have SAFEMOON price plummeting towards the $0.0014 lows. Meanwhile, proponents project choppy trends for the altcoin, capping the downward move at $0.0009.
SafeMoon Investors Flee the Scene
SafeMoon price bleeds amid the weekend crash. Meanwhile, negative updates on the Ukraine-Russia war added pressure to the market. Such developments had investors escaping risk assets, including SAEMOON. With that, SafeMoon’s price witnessed a 17% decline, without support signals.
The altcoin might see more plunges as investors fail to step up to back the relief rally, which started earlier today. Nevertheless, broad market sentiment remains vital for the altcoin’s trend. The currency bearishness across the crypto spectrum supports SafeMoon’s pessimistic outlook.