On February 16th, the Gala Games (GALA) price turned down from the $0.357 mark. Amidst the recent sell-off in the crypto market, the coin chart shows six consecutive red candles, which slumped the coin price to $0.215. However, the price action suggests a bullish reversal from this support, aiming above the $0.3 mark.
Key technical points:
- The daily-RSI slope is poised to enter the bullish territory
- The intraday trading volume in the GALA is $1.9 Billion, indicating a 16.2% hike.
Source- Tradingview
The GALA price failed to follow up the recovery rally initiated on February’s third week. GALA coin price turned down from the $0.357 mark and lost 20% in hitting the $0.28 local support. A formation of a double top pattern in the daily time frame chart bolstered the selling pressure and plunged to a prior resistance of $0.218.
The long-tail rejection candle on Feb 24th, indicating the buyers are aggressively defending this support. Today, the 11% intraday growth provides a strong follow-up with the formation of a morning star candle pattern.
The Relative Strength Index(46) slope is on the verge of crossing above the equilibrium, indicating a positive turn in trader’s sentiment.
GALA/USDT: 4-hour time frame chart
Source- Tradingview
The bullish reversal from the $0.215 support has surged the GALA price to the $0.25 mark, indicating a 13.45% gain. The buyers are attempting to breach a minor resistance at $0.25. If they succeed, the buyers would re-challenge the shared resistance of $0.285 and 20 DAM, which is the key level to initiating a recovery.
On a contrary note, if sellers revert the GALA from the $0.285 mark, the coin price would retest the $0.215, posing a risk of a downtrend continuation.
The GALA price trading below the crucial DMAs(20, 50, 100, and 200) maintains a bearish trend. These overhead DMA lines could act as valid resistance to the coin price.
- Resistance level- 50-day SMA, $0.285
- Support level-$0.215, $0.177
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-bulls-must-break-this-resistance-to-initiate-a-recovery-rally/