The recent relief rally in Gala Games (GALA) price retested the breached support of $0.272. The evening star candle at this level indicated the completion of a bearish double top pattern. The follow-up rally could soon challenge $0.214, promoting a further price decline.
Key technical points:
- The GALA chart shows a 22.8% downside risk if sellers pull the price below $0.214 support
- The intraday trading volume in the GALA is $894.6 Million, indicating a 9.69% loss.
Source- Tradingview
Amid the recent sell-off in the crypto market, the GALA/USDT pair formed a double bottom pattern in the daily time frame chart. On February 20th, the sellers gave a decisive breakdown from the $0.272 neckline, indicating a further downside to coin holders.
The altcoin plunged by 22%, hitting a past resistance level of $0.214 mark. On Feb 24th, the coin chart displayed a long-tail rejection candle at this support, indicating intense buying pressure from below. The following rally pumped the altcoin to the $0.272 mark, where the evening star candle rejection suggested the support has flipped to resistance.
The MACD indicators show the fast and signal lines have recently entered the negative territory. However, the faded red bars on the histogram chart indicate a slight weakness in the bearish momentum.
GALA Price Approaching A 20-and-50-DMA Crossover
Source- Tradingview
The GALA price turned down from the $0.272 resistance, registering a 14.6% fall in the past two days. The sellers are steadily pulling the price to the local support of $0.214. If they succeed in slipping the altcoin below this level, the traders can expect a 22.8% fall by resisting the January low at $0.16.
On a contrary note, if buyers revert the altcoin from the $0.214 mark, the coin price would rechallenge the overhead resistance($0.272).
The descending 20-and-50-DMA shows traders are aggressively selling coins. Moreover, a bearish crossover among these DMAs could intensify the selling pressure.
- Resistance level- $0.272, $0.361
- Support level-$0.214, $0.16
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-with-the-double-top-pattern-complete-will-gala-price-return-to-januarys-low/