The price of Gala Games (GALA) has been moving consolidated for some time now, oscillating between $0.05288 and $0.03758, forming a descending triangle pattern. GALA has been on a downtrend since hitting its all-time high of $0.08714, a decline of over 300%.
GALA price continues to consolidate within the triangle, creating momentum for a possible breakout. Based on the descending triangle pattern that GALA price forms, it could either top out or down.
In this article, we will look at possible price actions when a potential triangle breakout occurs and how far it could move.
At the time of writing, the crypto asset’s price was down 1.45%, trading around $0.04287 below the 100-day moving average (SMA) over the past 24 hours, over a period of 4 hours and a day. Its market capitalization currently stands at over $1.3 billion with a trading volume of over $199 million, a decline of over 25% in the last 24 hours.
Price sentiment on the 4-hour and 1-day chart of GALA
From the chart over a 4 hour period, we can observe that the GALA prize is actively trading below the 100-day moving average, which suggests that the asset is on a downtrend and could continue to fall.
Furthermore, looking at the 4-hour MACD indicator, one can observe that the MACD histograms are moving below the MACD zero line with good momentum. The MACD line and MACD signal line are also moving below the MACD zero line. Given this MACD pattern, it is possible that prices will continue to fall and the market will still be extremely negative.
On a 1-day time frame, GALA price is actively bearish as it trades below the 1-day SMA, dropping a bearish candlestick.
The 1-day MACD indicator is also giving a bearish sign as the MACD histograms are decreasing, which means buyers are gradually losing momentum in the market. Furthermore, the MACD signal line attempts to move below the MACD line and the MACD zero line.
Potential Price Actions in the Event of a Breakout
In conclusion, if there is a breakout above the descending triangle pattern, GALA will begin an upward move towards the $0.06899 resistance level. If the price breaks this resistance level, it could rise further to test the $0.08714 resistance level.
On the contrary, if prices break below the descending triangle pattern to continue their downtrend, the price could start moving towards the $0.02041 support level. If this level fails to resist the price, it could fall further towards the $0.01293 support level to test it.
Featured image from Medium, chart from Tradingview.com
