GALA: Will the coming months usher in an uptrend?

Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

In November, GALA rocketed from $0.074 to $0.744, posting about 1000% gains in a matter of two weeks. Since mid-November, the price has followed most of those gains and established a downtrend that caused GALA to drop to $0.162. In the month of February, however, it looked like the currency’s long-term fortune could once again shift to the bulls side.

GALA-1D

Source: GALA/USDT on TradingView

The Fibonacci retracement tool was used to plot the retracement levels for the GALA move from $0.074 to $0.744 and showed that the retracement levels of 61.8% and 78.6% were at $0.232 and $0.162. Both levels have acted as important support for the past month.

As indicated on the chart, GALA has been in a downtrend since December. In early February, the coin closed a daily session above the (then) low of USD 0.365 and pushed north as far as USD 0.39 before being rejected.

In addition, the price has formed a higher low at $0.216 in the past week, compared to the lower low of the downtrend at $0.18. This indicated that the currency has taken the first step in turning the market structure into bullish.

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Source: GALA/USDT on TradingView

The daily RSI has not fallen below 40, which was significant as values ​​below 40 are typically interpreted as strongly bearish. In fact, at press time, the RSI stood at 46, which was more neutral than bearish.

The OBV has also made a series of higher lows in the past month, showing that buying volume was greater than selling volume despite the $0.39 rejection.

The Directional Movement Index showed that a strong trend was not underway – and this in itself proved that a trend shift could be close.

Conclusion

Given the uncertain longer-term market conditions and the dominance of fear in recent weeks, it can be risky to trust that GALA has indeed changed its market structure. However, the slow but steady demand coupled with the recovery from the USD 0.216 level, which was also a demand area, showed that bulls have reason to be optimistic. However, if the GALA falls below $0.21 then this bullish outlook should be shelved.

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