Gala (GALA), a prominent cryptocurrency, recently approached its significant resistance level but failed to surpass it, indicating a strong presence of sellers in this supply zone. This scenario suggests a cautious approach for traders, especially considering the growing dominance of sellers as reflected in the trading volume. This confluence of factors hints at a potential bearish shift.
Crypto analysts and educators known on Twitter as CryptoBusy shared a post providing insights on the current performance of the GALA market.
In large-cap cryptocurrencies like Gala, it’s crucial for traders to monitor Bitcoin (BTC), as its market movements often influence other major cryptocurrencies. Currently, Gala exhibits a bearish divergence, a pattern echoed across various cryptocurrencies, signaling a possible market correction if there’s a downturn.
Gala’s recent market behavior exemplifies a crucial juncture in cryptocurrency trading. Its inability to break through the major resistance level is not just a singular event but a reflection of the broader market sentiment, where sellers increasingly assert their influence. This situation is particularly noteworthy in the context of the supply zone, a region where selling pressure is typically higher.
Moreover, the correlation between Gala and Bitcoin is vital for traders to consider. The interdependence between these two cryptocurrencies means that fluctuations in Bitcoin’s value could have significant implications for Gala’s market performance. This relationship becomes even more critical during periods of market volatility, where Bitcoin’s movements could serve as a leading indicator for Gala’s future trajectory.
The critical support at $0.02400 is another factor traders should watch out for. If bears succeed in pushing Gala below this support level, it could trigger a significant downtrend. On the other hand, if Bitcoin manages to hold its ground and continue its uptrend, Gala might have a chance of breaking through the resistance of $0.02700 and moving towards its next resistance level at $0.03000. The selling pressure at this level is expected to be substantial, making it a crucial zone for traders to monitor.
In the past 24 hours, the Gala token has experienced a strong dip, with bears pushing the price down by over 4%. At the time of reporting, GALA is trading at $0.02540, trying to regain its footing after the recent market correction. The 24-hour trading volume also reflects the current bearish sentiment, with a decrease of over 24% at $106 million. The current market capitalization for Gala stands at $658 million, making it one of the top 100 cryptocurrencies by market cap.
The short-term technical indicators took advantage of bearish market sentiment, with the Relative Strength Index (RSI) hovering around 41. This value indicates a neutral to bearish market, with bears having a slight upper hand. The Moving Average Convergence Divergence indicator (MACD) also supports this sentiment, with the MACD line below the signal line. The histogram also shows a decrease in bullish momentum, further supporting the potential for a bearish turn. The Smooth moving average 10 (SMA) line at $0.02571 is another crucial level traders should watch out for, as a break below this level could signal a shift toward a downtrend.