Why wait and watch is the best course of action right now

SAITAMA’s price has been easing since a 33% spike was observed a couple of days ago. Sell signals were beginning to emerge on the RSI and MACD and observers must now wait bearishness to pan out before placing any long bets. At the time of writing, Saitama Inu traded at $0.0000052, down by 6% over the last 24 hours.

Saitama Inu 4-hour time frame

SAITAMA’s recent spike can be attributed to a down-channel breakout that occurred on 23 December. A massive green candle recorded a 24% jump in a single four-hour session. However, the move came to an end after a bearish double top was put into play at $0.0000059. The price could now move laterally over the coming sessions as buyers start to initiate longs at the 20 (red) and 50 (yellow) EMA’s.

However, bulls would need to overturn a supply zone between $0.0000056-$0.0000062 for a continued price recovery. Considering the MACD’s and RSI’s recent trajectory, external assistance in the form of a broader market rally would be needed to flip this resistance zone. A close above $0.0000062 would pave for a further 20% hike to $0.0000074 due to the lack of strong resistance levels. Meanwhile, near-term support at $0.0000048 and $0.0000042 would be key till a bun run develops. The 100-EMA (green) added an extra defensive layer as well.

Indicators

SAITAMA’s indicators suggested that bulls were losing grip of the market. The 4-hour RSI has formed lower highs since the double top pattern came to light. Should the index now slip below 50 and into bearish territory, near-term support levels would be called into action. The MACD was also on the cusp of a bearish divergence. A move below the half-line would even invite short-sellers to bet against the market.

Conclusion

Moving forward, Saitama Inu could trade sideways as bulls try to reignite momentum at the 20 and 50 EMA’s. However, the indicators were not favorable of a price increase just yet. The price could slip to near-term support levels if the RSI closes below 45-50. Hence, a wait-and-watch strategy is the best course of action right now.