$0.075 Fakeout Triggers A Potential Recovery

A descending trendline initiated in early April carried a significant correction rally for GALA/USDT pair. As a result, the coin holders lost significant support levels and reached a low of $0.048. However, a fakeout from the last support breakdown of $0.075 has increased the bullish tension and may kickstart a recovery rally.

Key points: 

• The descending trendline offers dynamic resistance to GALA price
• The intraday trading volume in the GALA is $1 Billion indicating a 50% gain

Source- Tradingview

On April 6th, the GALA price broke down from the ascending support trendline, carrying the last quarter’s recovery rally. However, the renewed selling pressure trigged a steady downtrend, piercing through multiple support levels one after another. 

Furthermore, the GALA price had recently breached the $0.074 support level, indicating that the sellers are preparing for further downfall. Over the past six weeks, the GALA price tumbled by 83% and has marked its current low at $0.0487. 

However, the sellers failed to sustain the GALA price below the $0.07 mark, resulting in a support fakeout. This bear trapped punished the aggressive seller who took the breakdown entry, and their forced liquidation fueled today’s price jump.

Currently, the GALA price trades at the $0.099 mark, displaying a 45.6% intraday pump. If buyers continue to push the price higher, the altcoin will retest the aligned support of the descending trendline, 20-day EMA, and $0.13 level.

However, until the resistance trendline is intact, the altcoin will continue to bleed and may drop below $0.078.

Conversely, the buyers would breach the dynamics resistance under an unexpected bullish scenario, triggering a potential recovery rally.

Technical Indicator

The Daily-RSI slope escaped from the overbought region bolsters the recovery theory. 

However, a bearish sequence among the declining EMAs(20, 50, 100, and 200) indicates the potential rally would face multiple resistance ahead.

• Resistance level- $0.13, and $0.165
• Support level- $0.074, and $0.05

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.