GALA token price analysis: Token price shows signs of reversal

After slipping from the supply zone, the price of GALA tokens is now trading in the demand zone.
On a daily time horizon, the token price is forming a falling wedge pattern.
The price of the GALA/BTC pair is currently trading at 0.00000161, up 1.58% over the last 24 hours.

The GALA token price, as per the price action, is trading at the long-term important demand zone. Recent bearish pressure in the overall cryptocurrency market has caused the token price to fall back to the demand zone. The token price is among lower low and lower high formation on a daily time frame.

GALA token price forms positive price structure

The token price faced continuous rejection of the downward sloping green trendline acting as a strong supply zone. The token has continuously bounced off the demand zone. Going upwards the token price can be seen facing rejection of the recent higher high. At present, the GALA token price is trading at the lower band of the Bollinger band indicator, after failing to surpass the upper band.

The GALA token price is currently trading below the 50 and 100 MAs. The recent fall in the price of the GALA token price has led to the breakdown of the important MAs. Moving upwards the token price can be seen facing strong bearish pressure from these MAs. Volumes have increased as the token price fell to the demand zone. As a result, volatility is bound to increase in the upcoming trading days and therefore investors should remain cautious.

The GALA token price if forming a falling wedge pattern on a daily time frame

The GALA token price is trading at the demand zone after falling from the supply zone. The recent fall in the price of the GALA token price triggered a negative crossover on the MACD indicator. The blue line crossed the orange line on the downside. If the token price can sustain at the demand zone and bounces off it breaking the falling wedge pattern, the MACD lines can be seen triggering a positive cross-over. Investors should wait and watch for a proper signal of the trend as a breakdown of the current long-term demand zone will trigger the MACD line widening supporting the trend.

RSI curve is trading at the level of 35.39. The RSI curve is yet to cross the halfway mark of 50. Once the token crosses the supply zone of 0.820 the token price can be seen moving up with strong bullish momentum. The RSI curve has crossed the 14 EMA yellow line indicating a short-term bullishness. Once the RSI crosses the halfway mark of 50 the GALA token price can be seen breaking the supply zone, supporting the trend.

The GALA token price fell from the important supply zone on a daily time frame. As a result, the token price gave a breakdown of the super trend buy signal line. Since then the GALA token price has been in a strong downtrend. Moving forward the token price can be seen facing bearish pressure at the super trend sell line. The breakout of the falling wedge pattern on the daily time frame can trigger a super trend giving a buy signal.

Conclusion: GALA token price is in a strong downtrend. Price action suggests the same as the token price breaking the important demand zone. The technical parameters are also bearish supporting the trend on a daily time frame. Investors should wait for a breakout of the falling wedge bullish chart pattern in a 4-hour time frame and then act accordingly.

Support: $0.033 and $0.031

Resistance: $0.057 and $0.048

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing