Over the last weeks, the Gala Games (GALA) price tumbled by 40%. The coin chart shows six consecutive red candles, which plunge the altcoin to the $0.21 mark. Today, the coin price turns green at this support, but can they sustain this buying?
Key technical points:
- The daily-RSI slope nosedive into the negative region
- The intraday trading volume in the GALA is $1.7 Billion, indicating a 7% gain.
Source- Tradingview
On February 16th, the GALA/USD pair turned down from the $0.36 mark. The sustained selling slumps the GALA coin to the local support of $0.28. Moreover, the technical chart displays a bearish double pattern, which bolstered the ongoing selling.
The bear gave a decisive breakdown from the neckline support($0.28) with a sufficient spike in trading volume. The follow-up selling plummeted the GALA coin to a prior resistance of $0.22, indicating a 23% fall from the breached support.
The GALA price trading below the trend defining 100-day SMA along with the down-sloping 50-day SMA indicates the bears are dominating the field.
The recent sell-off sinks the RSI(41) slope below 14-SMA and the neutral line, indicating a bearish sentiment among the traders.
GALA/USDT: 4-hour time frame chart
Source- Tradingview
Today’s green candle with a 4% intraday gain hints the $0.22 level has flipped to support. The GALA coin could hover above this support to gain sufficient demand before it pumps to $0.285.
However, the bullish assumption would be invalidated, if sellers pulled the GALA below the bottom support, resulting in an 18% decline to the $0.173 mark.
The average directional index(38) slope steady rally highlights the increasing selling momentum.
- Resistance level- 50-day SMA, $0.285
- Support level-$0.22, $0.173
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/gala-price-analysis-gala-games-buyers-defend-0-25-support/