Retest Completion Threatens 33% Fall Under $0.050

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Published 11 mins ago

With last week’s downfall cooling off, the GALA/USDT pair witnessed a short recovery today but struggles to rise above the $0.070 level. The bullish struggle warns of a post-retest reversal that may shortly drive the prices below $0.50. Will the buyers withstand another bearish attack, or is a downfall inevitable? 

Key points: 

  • The retest phase of the symmetrical triangle pattern teases downtrend continuation.
  • The 20-day EMA provides dynamic resistance.
  • The intraday trading volume in the GALA is $500 Million indicating a 19% gain.

GALA/USDT ChartSource- Tradingview

The GALA sellers experience a boost in selling pressure as the global market takes a hit over the week. As a result, the market value drops drastically by 36% over the week, resulting in a price drop under the crucial support trendline.

The failure of the ascending trendline to withstand the selling pressure leads to the symmetrical triangle pattern fallout. The fallout rally dives under $0.070 to test the buyers at the next psychological barrier at the $0.050 mark.

However, the start of a week cools off the selling spree and helps buyers capitalize on the halt at $0.050, resulting in the formation of a morning star pattern. The bullish reversal struggles to surpass the $0.070 and showcases a retest phase in action. 

The GALA price action shows a higher price rejection in the daily candle, evident by the long-wick formation. Hence, traders can expect a post-retest reversal rally challenging the perseverance of buyers at $0.050.

If altcoin pierces the psychological support, the sellers will drive the price 33% lower to the $0.04 mark. 

On the flip side, the bullish rally surpassing the $0.070 mark will reach the overhead resistance at $0.12.

Technical Indicator

The Daily-RSI slope shows an uptrend in action generating a bullish divergence with the price action displayed by the support trendline. Moreover, the V-Shaped reversal preparing to surpass the 14-day average displays strength in the underlying bullishness.

The  20-day EMA keeps the bullish growth in check as it provides dynamic resistance at multiple spots.

  • Resistance level- $0.75, and $0.13
  • Support level- $0.05, and $0.01

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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