GALA Market Analysis

GALA saw strong bearish momentum in recent days that drove the RSI below 50
OBV fell to reflect selling, but liquidity pooled around $0.052

GALA, at the time of writing, was up 35.4% from its local low at $0.0295, formed less than 24 hours ago. Bitcoin’s volatility dragged sentiment across the market, leading many altcoins to shed over 20% to 30% from their local highs to their local bottoms.

In fact, GALA experienced a 55% drawdown from $0.0665 to $0.0295. At press time, it was trading at $0.04. It could consolidate around the $0.05 level in the coming days before potentially rallying higher.

Bearish Structure and Momentum Dominate GALA

The $0.045-$0.05 zone had been significant resistance in April and May 2024. The rally in November saw the altcoin’s price surpass this zone and retest it as support in the second week of December.

The 78.6% Fibonacci retracement level at $0.028 was nearly retested as support. In lower timeframes, a move past $0.0427 would indicate a short-term bullish sign.

The OBV took a hit in December but was still significantly higher than six weeks ago, indicating firm buying pressure recently, which is promising for another GALA move beyond $0.05.

However, the market structure of the altcoin appeared bearish. A daily session close beyond $0.0547 would flip the structure bullishly.

Liquidity Pockets to the North Beckon the Price

To the south, the $0.033 and $0.029 levels marked considerable liquidity concentrations. Both were swept in recent days, and the price has bounced strongly since then. The recent bounce seemed to target the $0.047 and $0.052 levels next. Beyond that, gauging enough short-term demand to fuel further gains was uncertain.

Read GALA’s Price Prediction 2024-25

The $0.052-$0.056 zone is a notable area on the liquidation heatmap. It will be a target for GALA over the next week, but moving significantly higher might prove challenging as the bulls would need time to consolidate.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion