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- GALA faces bearish momentum as resistance at $0.0419 holds strong.
- Rising trading volume during the downturn suggests interest in GALA remains high.
- Short-term traders may target $0.0375 support level as bears dominate the GALA market.
The Gala (GALA) market has been bearish, with bullish efforts to recuperate the market rebuffed early in the day after hitting resistance at the 24-hour high of $0.0419. Due to the failure, bears seized market dominance and dropped the price to a 24-hour low of $0.04021.
As of press time, GALA is worth $0.04034, a 3.19% decrease from its previous closing. If the bulls rebound and break the $0.0419 resistance, the next level to monitor is $0.0445. On the other hand, if bears manage to keep the market under their control, GALA might fall to $0.038.
During the downturn, market capitalization declined by 3.00% to $281,366,128, while 24-hour trading volume increased by 3.29% to $126,415,528. This rise in trading volume during the downturn implies that there is still a lot of interest in GALA, and traders are aggressively buying the dip.
GALA/USD 24-hour price chart (source: CoinMarketCap)
On the GALA 3-hour price chart, the Keltner Channel bands have begun to move downward, with the upper bar at 0.04278842 and the bottom bar at 0.03888144. This movement indicates that GALA’s bearish hand is gaining traction, and traders may consider selling or shorting GALA to profit from the downward trend.
Considering the price action is forming red candlesticks and falling below the middle line at 0.04083525, the next support level to monitor is around 0.0375. This level may serve as a viable target for short-term traders seeking to grab gains. This notion is because the price movement indicates that the bears are in charge of the market, and the price is likely to fall further in the near term.
The Money Flow Index, trending south with a value of 44.74, supports the negative momentum in GALA by showing that selling pressure is intensifying. If the MFI continues to fall and falls below the oversold level of 30, it might indicate an even bigger negative trend in the near future, and traders should take precautions when considering long positions.
GALA/USD chart (Source: TradingView)
On the GALA 3-hour price chart, the 20-day MA is at 0.04081822, while the 100-day MA is at 0.04014360. The advancement of the shorter-term MA above the long-term MA indicates that the negative momentum is waning and that a possible bullish trend reversal for GALA is on the horizon.
Since the 20-day MA has moved above the price action, GALA may test the 20-day MA while it is rebounding on the 100-day MA. Hence, it could provide an entry point. However, with the 100-day MA below the price action, the negative trend may continue in the long term. As a result, traders should keep an eye out for any possible resistance levels that might hinder a positive breakout.
With a value of 44.95, the Relative Strength Index is now heading below its signal line and entering the oversold area, indicating that GALA may still face some negative pressure in the short term. Consequently, before taking a long position, traders may wait for the RSI to move out of oversold condition and cross above its signal line.
GALA/USD chart (Source: TradingView)
GALA’s bearish trend continues with the potential for a bullish reversal. Traders must exercise caution and monitor key support and resistance levels before entering any positions.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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