Can Saga Price Head For A Reversal Amid Improved Sentiments

8月8日

Can Saga Price Head For A Reversal Amid Improved Sentiments
Meta Description: Saga price was observed rising after retracing the monthly lows highlighting the formation of a double bottom pattern

The weighted sentiment curve has improved from bearish to slightly bullish indicating an improved sentiment in the crypto.
At the time of writing, Saga was trading close to $1.004, recording an impressive development of 10% intraday.

Saga cryptocurrency bounced strongly after retracing the monthly lows. The optimism in the broader market helped the crypto gain an impressive 10% a day. The bulls stepped in today due to which the blue chip cryptocurrencies and altcoins headed for a recovery today.

Earlier, in the recent sessions, the crypto markets saw a sharp crash dragging several cryptocurrencies near the lows. Saga had been in a declining trend for the last three months and the recent crash did not but widened the losses.

However, the analysts have noted some positive development in on-chain metrics like weighted sentiment suggesting a potential for improvement in the price. Let's combine all the data and try to get a clear picture about the trajectory of Saga in the upcoming sessions.
Weighted Sentient Curve Indicates Improved Investors Sentiment
As per the data obtained by an on-chain analytics website app.santimment.net, the positive sentiments seemed to be improving due to which the weighted sentiment curve has shifted to a from bearish to bullish territory.

<iframe title="Santiment Chart: Negative sentiment (Total) (SAGA), Positive sentiment (Total) (SAGA), Weighted sentiment (Total) (SAGA)" width="800" height="425" src="embed.santiment.net/chart?ps=saga&pt=SAGA&df=2024-07-07T18:30:01.908Z&dt=2024-08-08T18:29:59.908Z&emcg=1&emhwm=1&wm=sentiment_negative_total;sentiment_positive_total;sentiment_volume_consumed_total&wax=0;1;2&wc=#FF5B5B;#FFCB47;#5275FF&ws={"interval":"1h"};{"interval":"1h"};{"interval":"1h"}" scrolling="no"></iframe>

Source: app.santiment.net

The weighted sentiment curve reflects the combined biasness of the investors and traders whether it is bullish or bearish. A shift in the weighted sentiment curve above the zero line suggests the increasing confidence of the investors in the crypto.

Saga is a fully decentralized, proof-of-stake blockchain secured by Tendermint consensus. Along With a launch on April 9, 2024, the SAGA Protocol introduced 1 billion SAGA tokens at genesis. The token supply inflation is guided by SAGA’s tokenomics, aiming for an annual rate of approximately 7%.

Saga’s mission is to support the creation of the next 1000 chains in gaming and entertainment within the expanding Saga Multiverse. It offers end-to-end infrastructure for developers to build the next generation of blockchain applications.
Can Saga Price Make A Bullish Reversal
Saga price was observed rising after retracing the monthly lows highlighting the formation of a double bottom pattern. The formation of a double bottom pattern indicates the possibility of a bullish reversal above the neckline of the pattern.

While applying Fibonacci from the recent swing high at $1.82 and swing low at $0.86. The golden zone was observed near the $1.44 level. The golden zone of Fibonacci is considered a crucial level for reversal.

On the higher side, if the bulls are able to surpass the golden zone i.e. $1.44 level, it could mark the end of a correction phase and initiation of a new bullish phase. As of now, Saga lags nearly 40% from the reversal zone. The bulls need a strong counter to shift the trend in their favor.

Also, the key EMAs of 20, 50 and 200 days were placed above the price suggesting a prevailing bearish trend. At the time of writing, The RSI line was observed taking a bounce and was placed near 40 points. The 14 day SMA line was observed at 41.8 points. The bounce in the RSI highlights a recovery in the short term.