Let's examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations
If we take a broader view of GALA, it’s evident that we’re still operating within a bear market. The overarching pattern remains bearish, and we haven’t yet witnessed a significant breakout to confirm a complete trend reversal.
Now, if we zoom in and examine the chart in more detail, we can observe that GALA has been moving in a sideways channel for a considerable period. This lateral movement suggests that sellers are gradually losing momentum, while buyers are slowly beginning to accumulate.
At present, GALA is hovering around the $0.018 support zone. This is a critical level, as throughout history, whenever the price reached this zone, it tended to bounce back upwards. Consequently, we can classify this zone as a buying opportunity, where the probability of a price increase is slightly higher than that of a breakdown. However, it’s important to note that this doesn’t guarantee an immediate price pump.
Examining the RSI, or Relative Strength Index, we can see that it is slowly rising and about to pierce through the median line. This occurrence serves as an early indicator of increasing momentum in the market. In previous instances, whenever the RSI crossed above this level, it resulted in a short-term surge in the price. If this pattern repeats, we might witness GALA pushing higher in the coming days or weeks.
Furthermore, let’s analyze the MACD, or Moving Average Convergence Divergence. We can observe some interesting developments. Although the MACD is still situated in the negative zone, signifying that overall market momentum remains weak, it’s noteworthy that the MACD line is slowly but steadily climbing towards the neutral zone. This upward trajectory suggests that a new momentum shift could be unfolding. A bullish crossover of the MACD lines could provide further confirmation of a trend reversal in progress.
Another key indicator to keep an eye on is the moving averages. Plotting the 50-day moving average, often used to gauge short-term trends, we can see that the price has finally broken above this level. For a long time, the price remained below the 50MA, which signaled persistent selling pressure. However, this breakout could indicate that buyers are gradually accumulating GALA, making a new trend more likely.
Finally, for those planning to enter a trade with GALA, having a proper risk management strategy is crucial. As mentioned earlier, the current buying zone is around $0.018, and it’s best to set your stop-loss below $0.017. A breach below this point would suggest that the support has failed, setting the stage for a deeper retracement. Setting a take profit level at $0.04 is advisable, as this zone has previously acted as resistance, setting the stage for renewed selling pressure. If, however, GALA manages to break above $0.04, then the next take profit level should be at $0.06, a stronger resistance where the price could be rejected again. Taking profits at key resistance levels is a good practice for securing gains and minimizing risks.
Despite the positive signals on lower timeframes, it’s crucial to remember that in the bigger picture, we are still in a bear market. This implies that while short-term price movements might look promising, there’s always a possibility of another leg down in the long term.
As always, only trade with an amount of money you can afford to lose, and prioritize managing risk as diligently as you search for good entry and exit points.
