Responding to the overspread correction phase in the crypto market, the GALA price gave a bearish breakdown from the $0.21 support. The coin price retested its flipped resistance over the weekend and provided a weekly candle close below it. Furthermore, the sellers continued to lower the price and dumped it to $0.18 support.
Key points:
- The potential reversal may push the GALA price back above $0.21
- The daily candle closing below the $0.158 low would invalidate the bullish thesis
- The intraday trading volume in the GALA is $352 Million indicating a 104% gain
Source- Tradingview
Last month the GALA/USDT pair witnessed a range-bound rally between the $0.27 and $0.21 levels. On April 4th, the altcoin turned down from the overhead ceiling($0.27) and initiated a new bear cycle.
The V-top reversal undermined the March recovery rally and plunged the altcoin back to $0.21. Furthermore, the sellers continued to pressure the price and gave a decisive breakdown from the bottom support($0.21).
The post retest rally drove the price by 14%, bringing it to January’s bottom support of $0.18. A descending trendline carries this correction rally and keeps the buyer activity in control. The coin price currently trades at $0.189, with an intraday loss of 1%.
A possible reversal from the bottom support would breach the overhead resistance trendline and trigger another recovery rally. The following $0.21 breakout would offer additional confirmation for buyers.
Alternatively, a breakdown from the $0.158 support could plunge the GALA price by another 20%.
Technical Indicator
DMAs: The descending DMAs(20, 50, and 100) reflect a solid bear trend in GALA. Moreover, a bearish crossover of the 20 and 50 DMA brings additional selling in the market.
Vortex Indicator: A gradual spread between the VI+ and VI- slopes indicates a rising bearish momentum.
- Resistance level- $0.21, and $27
- Support level- $0.18, and $0.158
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-revisits-0-18-bottom-support-time-to-buy/