Rally falters at 100-EMA, correction incoming?


SAITAMA is targeting a return to $0.00000001178 support after being rejected at the 100-period EMA (blue). An early cut-off at $0.00000001525 can reject the bearish thesis, although bulls had to battle past bearish on-chain metrics to solidify the price above a key resistance area. At the time of writing, SAITAMA traded at $0.00000001593, up by 24% over the last 24 hours.

Saitama 4-hour Time Frame

Source: TradingView

SAITAMA investors have enjoyed a period of brief returns after the price tumbled by 33% yesterday. A risk-on broader market allowed SAITAMA to recover above the 61.8% Fibonacci as a 42% upwards run metalized from $0.00000001178.

However, the market dynamics were shifting towards the bears over the past few sessions. That was largely because the price was rejected after tagging the 100-period EMA – a sign that bulls may not have enough momentum to keep pushing forward on the chart. The rejection carried weight as it came before SAITAMA closed above the upper limit of a supply zone between $0.00000001708-$0.00000001505.

Furthermore, multiple red flags emerged on the 4-hour metrics as SAITAMA shifted lower. The RSI failed to push above 60 after two attempts as bears prevented a foothold in the bullish ground. The current reflection of market sentiment was more evident on the MACD. The oscillator was close to flashing a sell signal as the Signal line (blue) closed in on the Fast-moving line (blue).

If the 50% Fibonacci level is lost due to the above-mentioned factors, SAITAMA would be on course for another correction. A recently formed support zone between $0.00000001270 and $0.00000001178 was the safest area on the chart for buyers if a drawdown materializes.

Conclusion

SAITAMA’s price was showing early signs of exhaustion. The price could not progress above the 100-EMA and its implications were evident on the 4-hour indicators. Investors should be on the lookout for a close below the 50% Fibonacci level as the same would lead to a wave of downwards pressure.