GALA Forms Descending Triangle Pattern – Here Are Key Levels To watch
The price of Gala Games (GALA) has been moving in a consolidation manner for a while now, moving between $0.05288 and $0.03758, forming a Descending Triangle pattern in the process. GALA has been on a bearish trend since hitting its all-time high of $0.08714, making a drop of over 300%.
GALA’s price is still consolidating within the triangle, building up momentum for a potential breakout. Based on the descending triangular pattern the price of GALA is forming, it could either break above or break below.
In this article, we will see the possible price actions when a potential breakout from the triangle occurs and how far it could move.
At the time of writing, the crypto asset’s price was down by 1.45%, trading around $0.04287 below the 100-day moving average (SMA) in the last 24 hours both on the 4-hour and 1-day timeframe. Its market capitalization is currently over $1.3 billion with a trading volume of over $199 million which is over 25% down in the last 24 hours.
Price Sentiment On GALA’s 4-Hour And 1-Day Chart
From the 4-hour timeframe chart, it can observed that the price of GALA is actively trading below the 100-day moving average, suggesting that the asset is on a bearish trend and could continue to move downward.
Also, looking at the 4-hour MACD indicator, it can be observed that the MACD histograms are trending below the MACD zero line with good momentum. The MACD line and the MACD signal line also are trending below the MACD zero line. Given this MACD pattern, it is possible that prices may continue to fall and that the market is still overwhelmingly negative.
On the 1-day time frame, the price of GALA is actively bearish as it is seen trading below 1-Day SMA dropping a bearish candlestick.
The 1-Day MACD indicator is also giving a bearish sign as the MACD histograms are going smaller in size, which means buyers are gradually losing momentum in the market. Also, the MACD signal line is attempting to cross below the MACD line and the MACD zero line.
Potential Price Actions In The Event Of A Breakout
Conclusively, if there is a break out above the descending triangle pattern, GALA will begin a move upward toward the $0.06899 resistance level. If the price breaks this resistance level, It could rise even higher to test the resistance level of $0.08714.
On the contrary, should prices break below the descending triangle pattern in continuation of its downtrend, the price might begin to move toward the $0.02041 support level. if this level fails to withstand the price, It could drop more toward the $0.01293 support level to test it.
Featured image from Medium, chart from Tradingview.com
