GALA prices show a relief rally as the crypto market stabilizing and showing a possibility of a bullish recovery after a tremendous bearish week. The gaming token shows a bullish reversal from the psychological mark of $0.050, teasing a potential uptrend continuation.
Key points:
- The GALA price shows a demand pressure at $0.05 support
- The 20-day EMA flipped to potential resistance
- The intraday trading volume in GALA is $225.5 Million indicating a 9% gain.
After a bullish trend in July, the GALA prices inflated by 54.3% but faced higher price rejections from the $0.070 resistance in mid-August. Due to the increased selling pressure at the overhead resistance, the market value declined by $2.6% within a week resulting in a price drop to the demand zone at $0.050.
However, the price action displays an underlying bullish strategy of a positive reversal with an inverted head and shoulder pattern. The aforementioned overhead resistance of $0.070 acts as the neckline of the bullish pattern.
Furthermore, the recent bullish reversal from the $0.050 demand zone increases the possibility of a price jump to complete the bullish pattern. Nonetheless, the lack of a surge in trading volume to support the bullish reversal questions the possibility of a trend continuation.
Suppose the GALA price breaks above the resistance confluence of the 20-day EMA and $0.058, a price jump to the $0.065 resistance level is possible.
On a contrary note, if the prevailing downtrend gains momentum, the GALA price may fall to the $0.0545 support level undermining the buyers at the psychological mark of $0.050.
Technical Indicator
RSI indicator: the Daily-RSI slope rising supports the bullish theory to rise above $5.5. Moreover, the indicator line nearing crossover above the midline will provide additional confirmation for buyers.
DMI indicator: as the market price increases, the DI lines project the possibility of a bullish crossover. However, the ADX line maintains a downward trend reflecting weakness in the price trend momentum.
- Resistance levels- $0.058 and $0.65
- Support levels- $0.05, and $0.045
