SAGA has undergone a significant price correction after peaking at $2.8688.
SAGA is currently trading around $2.4112, down significantly from its highs. The downtrend remains dominant, although there are some signs that the price may be looking for support.
SAGA price has broken the lower band of Bollinger Bands, indicating strong volatility and the possibility of price being in oversold territory. However, the fact that price has not returned inside the BB band suggests that the downtrend may still continue.
The RSI indicator is at 21.8256, deep in oversold territory. This is usually a sign that prices may recover in the short term, but does not guarantee a trend reversal.
Trading volume has been decreasing throughout the correction, indicating a weakening of selling pressure. However, volume has not increased significantly, indicating a lack of strong buying pressure.
Support: $1.6339 (recent bottom), $2.2715, $2.3715
Resistance: $2.4972 (recent high), $2.6228, $2.8688 (recent high)
Short-term: SAGA may recover slightly in the short-term due to being in the oversold zone. However, the downtrend may still continue if the price fails to overcome the resistance at $2.4972.
Medium term: The medium term trend is still unclear, need to monitor more price action and trading volume to confirm the trend.
Trading strategy:
It is not advisable to buy at this time, it is best to wait for confirmation of a bullish reversal signal, such as price breaking above the $2.4972 resistance with high volume and rising RSI.
If you are holding SAGA, you may consider selling to reduce your risk if the price breaks the $1.6339 support.
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