Despite today’s trading session showing Gala crypto price slowing down on its push to the downside, it has struggled in the past few months. Since August 26, after prices dropped by 8 per cent, Gala Crypto has traded in a sideways market within a very narrow price range of $0.048 and $0.053.
However, during yesterday’s trading session, the strong push to the downside saw the prices moving past the lower limit of the range Gala crypto has traded within $0.048 and reached price lows of $0.0466. This also marked the lowest price level Gala crypto has traded since July 26.
Today, the strong bearish trend that started yesterday continued with prices dropping by less than a percentage point. Although the momentum of the trend reduced significantly from yesterday’s 7 per cent drop, it was still a continuation of the bearish trend.
However, despite the past two day’s drop of 10 per cent and breaking out of trading within margin, today’s small price drop may be a signal that Gala crypto is struggling to continue with the bearish trend. It is likely that the momentum of sellers that has dominated the markets for the past few days has ended, and hence the current price action that is not moving significantly in the markets.
Therefore, there is a high likelihood that we may see prices failing to continue dropping and instead reverse and return to trade at the previous price range of $0.048 and $0.053. The move to the upside will also mean Gala crypto will not hit the $0.044 support level.
Should the price reversal happen, there are two scenarios that are likely to play out; either we will see the continuation of the horizontal trend that had persisted since August 26th, or a new bullish trend that might see prices going as far up as to trade above $0.070 resistance level.
In my opinion, the latter is the most likely scenario, as I expect the crypto industry to also recover, which might push Gala crypto further up. My analysis will be invalidated should the prices drop to hit the $0.044 resistance level.
This post was last modified on Sep 07, 2022, 15:02 BST 15:02