The recent decline in the cryptocurrency market has seen loads of bearish Project Galaxy price predictions hit the market in recent days. Project Galaxy is one of the relatively new tokens listed on several exchanges as recently as March 2022. When the token was listed on the Gate.io exchange, it shot up 10-fold on the same day.
If you bought $10,000 worth of the token during its early days when it still sold at below the listing price of $0.30, your portfolio would have risen to nearly $100,000 on listing day. However, this listing came during the bear crypto market. Despite this, the token surged even more in the days preceding 6 May, when it sold at an all-time high of $18.4579. This would still have enabled investors buying on the exchange to profit big from it.
But with the rate hike increases by central banks in response to inflation, institutional money has moved out of the crypto market, leading to the collapse in price seen on many crypto tokens. Unfortunately, project Galaxy has not been exempted, and it now trades at $7.3932.
A look at the 4-hour chart of Project Galaxy indicates that the hefty burst to the upside was preceded by an initial spike, followed by a period of tight consolidation. However, the recent decline resulted from the topping dark cloud cover pattern of 6 May. This pattern was cemented by a bearish outside day candle and a subsequent breakdown of the support at 14.1790 (5 May low). Several patterns have formed subsequently:
– a descending triangle pattern that led to the breakdown of the 11.9326 support level.
– a bearish pennant, whose measured move ultimately broke down the 8 May low at 8.5631.
Currently, the price activity has tested the 8.5631 former support-turned-resistance to return to its origins. However, the bears have rejected this move strongly, turning the 4-hour candle into a hanging man pattern. So what is the new Project Galaxy price prediction with this price picture in mind?
The intraday decline at the 8.5631 resistance (8 May low) indicates a high downside potential. The support provided by the intraday low at 6.2231 must be broken for the price action to cover the upside gap of 5 May. If this happens, the next target is the 4.0703 support level (29 March high in role reversal). If the bulls fail to defend this support, there is no stopping the bears from pushing the price action down to the 3.0407 pivot (18 April low).
On the other hand, the bulls must uncap the 8.5631 resistance to offer a chance at recovery. This recovery targets 10.4241 initially (8 May high) before a further break opens the door towards the 11.9326 resistance mark (9 May high). Additional barriers are seen at 14.1790 and at the all-time high price of 18.4735.
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This post was last modified on May 10, 2022, 17:21 BST 17:21