SAFE, the native token of Safe Wallet surged 72% over the last day

Safe (SAFE) surged to $1.65, marking a 115% increase from its September low after a “god candle” propelled the token from $0.94 to $1.70

The price of Safe (SAFE) soared over 72% in the last 24 hours after its token went multichain and secured a listing on South Korea’s largest cryptocurrency exchange.

The token surged to $1.65, notching a 115% increase from its September low. A “god candle” pushed the token from $0.94 to $1.70, bringing its market capitalization to $805 million.

Despite the recent rally, SAFE still trades 53.6% below its all-time high of $3.56, which was hit in April.

The recent price rally occurred in a high-volume environment. SAFE’s daily trading volume was up 425%, clocking in at $114 million, far higher than the $4 million seen on Oct. 24 morning.

The token’s listing on Upbit with trading pairs in Korean Won (KRW), Bitcoin (BTC), and Tether (USDT) was a major factor behind the rally.

When a token gets listed on a large cryptocurrency exchange, it usually experiences a price surge. This is because the listing exposes the asset to a new market, where fresh investors can drive up the price with their buying interest.

According to an Oct. 24 X post by on-chain insights platform Spot On Chain, there’s been a spike in wallets buying SAFE since its Upbit listing.

The top five first-time buyers alone purchased 1.356 million SAFE ($2.24 million) from OKX, Bybit, and Uniswap, collectively gaining $150,000.

Furthermore, Safe Wallet’s recent shift to a multichain environment has also contributed to the momentum by enhancing usability across over 15 networks.

The multichain environment allows users to enjoy a unified wallet experience with a single deployment, a consistent address across chains, and gas-free transactions on major Layer 2 networks, which may have led to the increased demand for SAFE.

Price correction likely in the cards

It’s important to note that while rallies following an exchange listing can be substantial, they also often lead to a trend reversal as investors sell to lock in profits.

As one community member, Crypto Academic, pointed out, a similar situation occurred with Injective’s token (INJ), which spiked after its Upbit listing only to see a sharp drop the next day. Crypto Academic noted that as a stronger altcoin, INJ still faced substantial profit-taking, suggesting SAFE could experience a similar outcome.

Technical indicators also suggest a potential pullback in SAFE’s price, as it was positioned above the upper Bollinger Band at the time of writing, with the Relative Strength Index at 78, well above the overbought threshold.

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.