Retest Completion Threatens 33% Fall Under $0.050

With last week’s downfall cooling off, the GALA/USDT pair witnessed a short recovery today but struggles to rise above the $0.070 level. The bullish struggle warns of a post-retest reversal that may shortly drive the prices below $0.50. Will the buyers withstand another bearish attack, or is a downfall inevitable? 

Key points: 

• The retest phase of the symmetrical triangle pattern teases downtrend continuation.
• The 20-day EMA provides dynamic resistance.
• The intraday trading volume in the GALA is $500 Million indicating a 19% gain.

Source- Tradingview

The GALA sellers experience a boost in selling pressure as the global market takes a hit over the week. As a result, the market value drops drastically by 36% over the week, resulting in a price drop under the crucial support trendline.

The failure of the ascending trendline to withstand the selling pressure leads to the symmetrical triangle pattern fallout. The fallout rally dives under $0.070 to test the buyers at the next psychological barrier at the $0.050 mark.

However, the start of a week cools off the selling spree and helps buyers capitalize on the halt at $0.050, resulting in the formation of a morning star pattern. The bullish reversal struggles to surpass the $0.070 and showcases a retest phase in action. 

The GALA price action shows a higher price rejection in the daily candle, evident by the long-wick formation. Hence, traders can expect a post-retest reversal rally challenging the perseverance of buyers at $0.050.

If altcoin pierces the psychological support, the sellers will drive the price 33% lower to the $0.04 mark. 

On the flip side, the bullish rally surpassing the $0.070 mark will reach the overhead resistance at $0.12.

Technical Indicator

The Daily-RSI slope shows an uptrend in action generating a bullish divergence with the price action displayed by the support trendline. Moreover, the V-Shaped reversal preparing to surpass the 14-day average displays strength in the underlying bullishness.

The  20-day EMA keeps the bullish growth in check as it provides dynamic resistance at multiple spots.

• Resistance level- $0.75, and $0.13
• Support level- $0.05, and $0.01