Despite a downfall of 25% over the past 7 days, Gala is presenting a potential recovery ahead. With a 3.09% surge in the past 24 hours, Gala has a market cap of $822 million.
Meanwhile, the Gala token currently trades at $0.0223. Despite the short-term recovery, the intraday loss and increased volatility keep Gala at a crucial crossroads.
Daily Chart Analysis: Gala at a Critical Support Level
In the daily chart, the downtrend in Gala continues as it breaks under the 50% Fibonacci level at $0.003259. Currently, Gala is testing the crucial 78.6% Fibonacci support level at $0.002275.
With an intraday pullback of 8.89%, a closing under this support level will likely prolong the bearish trend. As per the Fibonacci retracement level, the immediate support for Gala remains at $0.017414.
However, the daily RSI line reaching the oversold boundary level hints at a potential bullish reversal if bearish exhaustion arises. In such a case, a V-shaped reversal in Gala could likely retest the 50% Fibonacci level at $0.003259.
Long-Term Outlook: Sideways Trend with Bullish Hints
On a larger time frame, Gala maintains a sideways trend between the support level at $0.01259 and the overhead ceiling at $0.087098. Based on the trend-based Fibonacci levels, the price band is between the 0% and 23.60% Fibonacci levels.
Currently, the lower price ejection in the weekly candle projects the potential for an early reversal, pushing Gala to test the overhead ceiling. Furthermore, the weekly RSI line slightly below the halfway level projects significant bullish strength compared to previous dips.
Hence, the possibility of a new Morning Star pattern arises if Gala manages to end the week with a pin bar candle, signaling a potential bullish comeback.
A Parabolic Rise on the Horizon?
Supporting the chances of a bullish recovery, Javon Marks, a crypto analyst, has highlighted a bullish reversal possibility in Gala. The analyst projects a potential target at $0.710, forecasting a parabolic rise of 30 times if the uptrend results in a breakout rally.
While this seems highly optimistic for Gala to reclaim its all-time high levels, the combination of technical signals and market sentiment could fuel a significant price surge if bullish momentum gains traction.
Conclusion
As Gala remains under pressure due to recent bearish trends, the oversold RSI, key support levels, and potential bullish patterns hint at an upcoming recovery. If Gala manages to hold above crucial support and confirm a bullish reversal, a V-shaped recovery could be on the cards.
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