As of the current moment, GALA has seen a significant increase of 35.4% from its recent low of $0.0295, which was established less than a day ago. The cryptocurrency market faced a turbulent period due to Bitcoin’s fluctuation, causing many alternative coins to drop by 20% to 30% from their recent peak to their lowest points.
Specifically, GALA faced a 55% decline from $0.0665 to $0.0295. Currently, it is being traded at $0.04. In the upcoming days, there is a possibility that GALA might stabilize around the $0.05 mark before embarking on an upward trend.
Predominance of Bearish Structure and Momentum in GALA
The price range of $0.045 to $0.05 proved to be a crucial resistance area in both April and May of 2024. Although there was a surge in November that enabled GALA to surpass this range and then use it as a support level in early December.
The support level near the 78.6% Fibonacci retracement at $0.028 was almost revisited. On shorter timeframes, surpassing $0.0427 could indicate a brief bullish period.
Despite a decline in OBV and a downward trend in December, the indicator was still significantly higher than six weeks earlier, signifying substantial buying activity recently and potentially signaling a future uptrend for GALA above $0.05.
Nonetheless, the current market structure of GALA remains bearish. A daily closing above $0.0547 could trigger a bullish shift in the structure.
Upsurge in Price Driven by Liquidity Concentrations
Notable liquidity clusters were observed at the $0.033 and $0.029 levels towards the downside, both of which were surpassed recently, resulting in a strong price rebound. The rebound seems poised to target the $0.047 and $0.052 levels next. However, it remains uncertain if there is enough short-term demand to sustain further price increases.
The $0.052-$0.056 range emerges as a strategic point on the liquidation heatmap, representing a potential future target for GALA in the upcoming week. Yet, immediate progress beyond that level might face challenges as buyers might need time to consolidate their positions.
Disclaimer: The views presented do not constitute financial or investment advice; they solely reflect the opinion of the author.