SAITAMA is targeting a return to the $0.00000001178 support after being rejected at the 100-period EMA (blue). An early cut at $0.00000001525 could reject the bearish thesis, though bulls will have to face bearish metrics on the chain to solidify the price above a key resistance area. At the time of writing, SAITAMA was trading at $0.00000001593, up 24% over the last 24 hours.

4 hour period from Saitama

Source: TradingView

SAITAMA investors enjoyed a period of brief returns after the price dropped 33% yesterday. A broader risk market allowed SAITAMA to rebound above the 61.8% Fibonacci, with a metallized 42% rally to $0.00000001178.

However, market dynamics were changing for the bears in recent sessions. This was largely because the price was rejected after marking the 100-period EMA – a sign that bulls may not have enough momentum to continue advancing on the chart. The rejection had weight as it came before SAITAMA closed above the upper bound of a bid zone between $0.00000001708-$0.00000001505.

In addition, several red flags appeared in the 4-hour metrics as SAITAMA descended. The RSI failed to break above 60 after two attempts as the bears blocked a position in the bullish terrain. The current reflection of market sentiment was most evident on the MACD. The oscillator was close to flashing a sell signal when the signal line (blue) approached the fast moving line (blue).

If the 50% Fibonacci level is lost due to the factors mentioned above, SAITAMA would be on its way to another correction. A newly formed support zone between $0.00000001270 and $0.000000001178 was the safest area on the chart for buyers should a drawdown materialize.

Conclusion

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

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