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

SAFE, the native token of Safe Wallet, surged 72% in a single day following its listing on Upbit and the wallet’s shift to a multichain environment.

On Oct. 24, SAFE skyrocketed to $1.65, marking a 115% increase from its September low. The price surge was driven by a massive “god candle” that pushed the token from $0.94 to $1.70, boosting its market cap to $805 million. Despite the recent rally, SAFE remains 53.6% below its all-time high of $3.56, which occurred in April.

The surge was fueled by high trading volume, which spiked 425%, reaching over $114 million, far higher than the $4 million seen earlier on Oct. 24. The listing on Upbit, South Korea’s largest crypto exchange, was a key catalyst. The listing introduced new trading pairs for SAFE in Korean Won (KRW), Bitcoin (BTC), and Tether (USDT), which significantly boosted market interest.

An Upbit listing typically brings increased exposure and buying interest from a new market, which often drives up prices. Spot On Chain reported a surge in new wallets buying SAFE, with the top five buyers purchasing 1.356 million SAFE ($2.24 million) from platforms like OKX, Bybit, and Uniswap, gaining $150,000 collectively.

Additionally, Safe Wallet’s transition to a multichain environment, now supporting over 15 networks, enhanced usability and may have contributed to the demand for SAFE. The platform now offers gas-free transactions on major Layer 2 networks and a unified wallet experience with a single address across chains.

Price Correction Expected

Despite the strong rally, there are concerns that SAFE’s price may face a correction. Rallies following an exchange listing often result in profit-taking, leading to price drops. A community member, Crypto Academic, referenced a similar situation with Injective’s (INJ) token, which spiked after its Upbit listing but saw a sharp drop shortly after.

Technical indicators suggest a potential pullback. SAFE was trading above the upper Bollinger Band, and the Relative Strength Index (RSI) was at 78, indicating the token is in overbought territory. This suggests that a price correction may be imminent.

In the event of a trend reversal, the altcoin will likely find support around the $0.9992 level, which aligns with the middle Bollinger Band on the 1-day SAFE/USDT price chart.