Saitama Inu is positioning for a massive upswing after trading within a descending channel for the past seven days. Buying is expected to be back with a bang once SAITAMA tags a series of close-knitted supports between $0.000000047 and $0.000000039, paving way for at least a 30% run up to $0.000000061. Meanwhile, a close below would invalidate the setup and lead and start a deadly downtrend. At the time of writing, SAITAMA traded at $0.000000050, down by 14% over the last 24 hours.
Saitama Inu 4-hour time frame
Saitama Inu has formed three distinctive lower highs and two lower lows after a mammoth 80% hike during the first week of January. Two parallel trendlines plotted along these highs and lows outlined a descending channel on the 4-hour chart. This channel is a bearish sign and appears after sellers bet against the market for a prolonged period. Usually, the pattern does lead to an upwards breakout once buyers renter at strong support levels.
Fortunately for SAITAMA, its price was nearing a support zone of $0.000000047-$0.000000039. An upwards breakout can be expected once SAITAMA dips further and tags this defensive resource. The most bullish outcome would see SAITAMA climb by 57% and tag $0.000000061-resistance. Expect a correction once the price meets its 200-EMA (green).
However, a close below $0.000000039 would disrupt the bullish prediction. A support line of $0.000000028 would then carry the mantle for a recovery.
SAITAMA’s 4-hour indicators showed that some more downside was expected before a breakout. The MACD’s fast-moving line traded below the Signal line and no bullish crossovers were observed so far. The RSI lamented around 38 and was expected to shift to the oversold territory heading forward.
Saitama Inu’s dip would extend over the near term but an upwards breakout was likely once a support zone of $0.000000047-$0.000000039 is met. Until then, traders are advised to avoid any longs within a down-channel. Longs should be initiated once SAITAMA closes above the upper trendline. Take-profit can be set at $0.000000061.