Saitama Price Strategy – Will SAITAMA overcome this bearish setup?

Saif Naqvi
Saitama Inu
Source: Pixabay

Saitama tokens are being lapped up by the community just before the projects unveil at the Crypto Expo in Dubai. Although threats were present in the form of a bearish pattern, rising buy volumes can allow Saitama to overcome the setup and climb to new heights. At the time of writing, Saitama traded at $0.00000001268, up by 6% over the last 24 hours.

Community Reactions

Before diving into the chart, it was important to understand why Saitama was scoring high on LunarCrush’s social volume model. The Crypto Expo in Dubai starts in less than 24 hours and the community expects Saitama to make some important announcements. On LunarCrush, Saitama’s daily social dominance was up by 52.5% while social volumes were up by 48%.

Source: Twitter

Some, such as @Saitama_Jen expect that a Binance listing could be the next big step for Saitama once the expo begins.

Source: Twitter

Twitter handle @KenlyLuxie threw attention to Dextools – a data analytics tool on which Saitama was the most trending alt at the time.

Saitama Hourly Chart

Source: TradingView

Saitama’s near-term was looking bullish on the hourly chart. A large green candle on 14 captured a 9% hike in a single session. A streak of higher lows was another positive development that outlined an uptrend.

However, a rising wedge pattern could not be overlooked. In technical analysis, rising wedges are considered as bearish patterns as the price usually closes below the lower trendline and extends to lower areas on the chart.

The hourly indicators were a reason for concern as well. The MACD flashed a sell signal as the Signal line crossed above the fast-moving line, while the DMI was also close to a bearish crossover.

Price Strategy

The abovementioned data points are contradictory and a risk-averse trader would think twice before taking a call on Saitama. Shorting the pattern could turn out to be ugly if an important announcement or a listing drives buying over the next few days. On the other hand, long setups can take a beating if other investors start dumping Saitama on the notion of ‘buy the rumor, sell the news.

Hence, traders should trade a breakout to be on the safer side. It’s quite straightforward – buy Saitama once the price closes above $0.00000001337 and sell if the price closes below $0.00000001230. This simple strategy should mitigate any uncertainties present in the market at the moment.