This week, we break down possible price movement for a popular P2E coin.
In one year's time, Gala saw an immense rise in value. It increased more than 3,000 since its all-time low on Dec. 28, 2020. Keep that in mind when you watch the following charts and read the explanation below.
Investing in cryptocurrencies that are up a lot, like Gala, comes with certain risks.
Gala vs the Dollar on the Daily chart
As evident in the chart, Gala rose quickly on the daily timeframe. This chart shows the trading on Binance and as you can see, Gala is up 44x since its launch in only a three-month time frame.
Gala came down to the untouched demand zone — marked with D1 Demand — and saw a short relief bounce after.
There is a D1 supply zone above the price, which is also marked. Between these two zones, Gala will probably only range.
Where GALA Goes Next: Bulls vs Bears
So — there are two probable scenarios from here on, a bullish one and a bearish one.
The bullish scenario would be the reclaiming of the broken supply zone above, making it a support level and starting the next leg up.
The bearish scenario would be if Gala loses the demand zone, which is now proven to be a support level, and continue the current downtrend from there on.
It is good to keep an eye out for an outbreak of both the price and the volume, as this will probably dictate the direction of the trend in the coming weeks.
Also, there is a possible “hidden bullish divergence” forming. That’s when the price makes higher lows, but the indicator (in this case, the RSI) makes lower lows.
Gala vs the Dollar on a 4-Hour Chart
When you zoom in, more details get more visible. Marked on the chart, you see a significant swing high in November, with two important supply zones above and three demand zones beneath.
If they manage to do so, Gala could actually start another leg up. If they are too weak, Gala will continue to make lower highs and lower lows, like the trend of mid-November till now. Losing the demand zones below would mean that bears remain in control.
A Summary of Gala
“Blockchain games you’ll actually want to play” is what Gala Games aspires to be. In this article, you didn’t get a review of the game, but instead solely a breakdown of what the chart of the native token, Gala, looks like.
The daily chart shows that Gala saw an immense increase in value. Gala showed a 3000X increase in less than a year. If bulls don’t step in here and reclaim a critical level, this recent all-time high could very well be a “blow off top.”
The 4-hour chart shows multiple supply and demand zones. The demand zone where price is above right now is acting as support, but it seems like Gala bulls have to step in fast to keep the bullish scenario alive.
Keep in mind that all of the above are solely the writer’s thoughts. Never take anything for granted and always do your own research.