GALA Technical Analysis: Rejection Brings Buy The Dip Opportunity
GALA is an Ethereum-based ERC 20 that powers Gala Games, a decentralized gaming platform. The token is used as a currency between gamers on the Gala ecosystem. For example, it can be used to pay for in-game items.
Gala Games confirms it will invest $5 billion to advance its NFT goals in the upcoming year. The NFTs will be split between music, gaming movies, and theme parks-based products. Around $16.73 billion worth of GALA, the native currency of the platform has been diluted by the company, which accounts for around 15% of the tokens that is currently in circulation
Let us move ahead to read about Gala technical analysis.
Past Performance of GALA
The GALA coin price shows a growth of more than 100% in the past week as it breaks above multiple sellers' point. The rally breaks above a consolidation range, the $0.30 horizontal level, and a long-coming resistance trendline within a week. As mentioned in our previous article, the overnight increase in buying pressure results in a trend reversal. However, the rally struggles to crush the selling pressure at the $0.40 resistance zone.
GALA Technical Analysis
The GALA coin price shows a bearish candle formation near the $0.40 resistance zone as the rally struggles to sustain the momentum. Therefore, a reversal to retest the trendline breakout is possible.
The token price exchanges hand above the slope of the super trend indicator representing an uptrend in action. The reversal comes after the sudden range breakout near the $0.20 support zone.
The RSI indicator shows exhaustion in the bullish momentum as the slope reverses from the oversold boundary. However, the 14-day SMA maintains an uptrend showcasing a medium-term uptrend.
The MACD indicator shows the fast line crossing above the zero line mark with a significant distance from the slow line. Moreover, the boom in the histograms reflects a solid bullish commitment.
Therefore, the indicators reflect a solid underlying bullishness that may surface with a retest of the trendline breakout.
Upcoming Trend
The GALA coin price action shows a 4% decline from the $0.40 resistance zone with a 10% fall in the intraday trading volume. Therefore, the short-term trend showcases a bearish reversal that may reach the $0.30 mark. However, the buyers-dominated level can unleash the trapped underlying momentum.
As for the crucial levels, the uptrend can face resistance near the $0.40 support zone and the $0.55 mark. However, on the opposite end, the support levels are placed at $0.30 and $0.22.