price Gala games (expensive) The pair has been moving in a consolidation fashion for a while now, moving between $0.05288 and $0.03758, forming a descending triangle pattern in the process. GALA has been on a downtrend since it reached an all-time high of $0.08714, resulting in a decline of more than 300%.
GALA price remains consolidated inside the triangle, adding momentum for a potential breakout. Based on the descending triangle pattern, GALA price is forming, and it is possible that it will break out to the upside or downside.
In this article, we will see the possible price action when a potential breakout of the triangle occurs and how far it could move.
At the time of writing, the price of the crypto asset is down 1.45%, trading approximately $0.04287 below its 100-day moving average (SMA) over the past 24 hours on the 4-hour and 1-day time frames. It currently has a market cap of over $1.3B with trading volume of over $199M which is up over 25% in the last 24 hours.
Price sentiment on GALA 4-hour and 1-day chart
From the 4-hour time frame chart, it can be seen that GALA price is actively trading below the 100-day moving average, which indicates that the asset is in a downtrend and could continue to move lower.
Also, looking at the MACD indicator on 4-hours frame, it can be seen that the MACD histograms are trending below the zero MACD line with good momentum. The MACD line and the MACD signal line are also trending below the MACD zero line. Given this MACD pattern, it is likely that prices will continue to fall and the market will still be significantly negative.
On the 1-day time frame, GALA price is actively bearish as it is trading below the 1-day SMA triggering a bearish candlestick decline.
The 1-day MACD is also giving a bearish signal as the MACD histograms are becoming smaller, which means that buyers are gradually losing momentum in the market. The MACD signal line also tries to cross below the MACD line and the MACD zero line.
Possible price action in case of a breakout
Conclusively, if there is a breakout above the descending triangle pattern, GALA will start moving upwards towards the $0.06899 resistance level. If the price breaks this resistance level, it may rise further to test the resistance level of $0.08714.
Conversely, if prices break below the descending triangle pattern in continuation of their downtrend, the price may start moving towards the $0.02041 support level. If this level fails to hold, the price may fall further towards the $0.01293 support level to test it.
Featured image from Medium, chart from Tradingview.com