Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Gala has performed exceptionally well in all markets over the past week. It found some support around the $0.181 level and has posted gains close to 100% in the past five days.
This is a strong short term bullish move, but can the bulls continue to push higher? Bitcoin’s price direction in the coming days could also have a strong impact on GALA.
Source: GALA/USDT on TradingView
In the charts, the plotted Fibonacci levels (yellow) came from an earlier move of GALA in November, when the price rose from $0.074 to $0.488. The extension levels of 27.2% and 61.8% of this move at $0.6 and $0.74 were respected by GALA as resistance on the one-day time frame.
In addition, the price also found support at USD 0.162 which was the 78.6% retracement of the aforementioned move.
When zooming in on the 1 hour chart to analyze GALA’s short-term strength, some misalignment between price and momentum has been observed in recent days. In addition to this bearish divergence, the Visible Range Volume Profile highlighted that the price’s most recent higher low at $0.32 was one area where demand could intervene.
Below USD 0.32 is the USD 0.3 level where the price could see a bullish reaction.
rode
Source: GALA/USDT on TradingView
The RSI on the hourly chart has formed a series of lower highs as the price pushed upward – indicative of weakening momentum. Likewise, the MACD also formed lower peaks. Both popular momentum indicators underlined a bearish divergence on the lower timeframes, which could lead to a pullback for GALA.
The Bollinger Bands were tight around price for the past few hours leading up to time. This suggested that there could be an impulse movement that builds up force. This movement can be either up or down.
If there is a downward movement, the pullback may not be serious. This is because the cumulative delta volume has risen significantly in recent days, indicating strong demand. In a slump, if it happens, the selling pressure should be quite intense to force the CDV a notable distance south. In such a scenario, bidding at the $0.32 or $0.3 support level could be precarious.
Inference
For GALA, the strong performance of recent days is likely to attract buyers. Therefore, the USD 0.36-$0.39 zone would be a good area for major players to take profits, lower prices, force late longs to close and soak up liquidity for the next leg up.
Another catapult higher is also a possibility, however, and a session closing above the USD 0.39 level could be an aggressive entry for long positions in such a scenario.
This post GALA may be forced to move in this direction in the future
was published first on https://ambcrypto.com/gala-could-be-forced-to-move-in-this-direction-going-forward/
