Can Bulls Regain Control at $0.04 and Drive GALA Higher?

In the last 24 hours, GALA has fallen by 7.02% and is currently priced at $0.0481, boasting a market cap of $1.75 billion. Despite this adverse price action, market interest has survived the wave of price drops, as the 24-hour trading volume of the coin rose by 7.98% and amounted to $272.5 million.

However, the token still has a long way to go, and with its important role in the decentralized gaming space, the long-term outlook looks good. This is evident as, from its August lows of $0.0134, the cryptocurrency has bounced over 263% to its current market value of $0.0481. This marks a shy-off of 94.24% from its November 2021 all-time high of $0.8367. Zooming out to the present day, the GALA token is now hovering within a rangebound pattern, consolidating within the $0.467 and $0.52 zones.

GALA Price Action: Key Levels to Watch

On a daily chart, GALA has support at $0.0477 and resistance at $0.065. The cryptocurrency’s support zone is being tested at the moment, and a strong bounce could push upwards to the $0.06 resistance level, which is currently aligning with the 0.618 Fibonacci retracement. If GALA can get beyond this resistance, it might go for the $0.09 yearly high zone, which also serves as a critical resistance point.

On the flip side, if the support cracks, GALA could see its price revert to the November 2024 low of $0.0150, foreshadowing massive downside. However, the market seems uncertain about the cryptocurrency’s next hall. A breakout above $0.055 may fuel further upside, while a downside break of the current support may provoke a selloff to lower levels. The price of GALA now has to contend with these key levels, representing a crucial line in the sand that will decide the altcoin’s possible rebound or further downside.

Oversold Conditions Signal Potential for Reversal

The Adaptive Volatility Controlled LSMA points out that current volatility is low as the token’s price stabilizes close to the line. With momentum in a weak state at the Awesome Oscillator reading of -0.0010, more consolidation or a slight decrease might occur.

On the other hand, the Stochastic Oscillator shows values of 18.24 and 23.25, which indicates GALA is oversold and may look for some kind of short-term reversal. If the present momentum shifts in favor of GALA bulls, the cryptocurrency might see its market value price push up to the resistance levels, or we might see continued consolidation.

GALA Long/Short Ratio: Market Sentiment Stabilizing

Looking at the GALA long/short ratio chart from December 2 to December 16, market sentiment has been witnessing heightened volatility. Yet, there has been a fair bit of bullish and bearish pressure, with long positions holding the reins for most of the period. According to CoinGlass data, the long-side ratio spiked on December 9, breaching 1, signifying that it was more optimistic on the part of traders.

Since December 16, however, the ratio has changed to more of a balanced market sentiment, with long positions just slightly ahead. This ratio shift shows that sentiment in the market is improving, and the market is in equilibrium regarding long vs. short positions. Moreover, this stabilization suggests traders are becoming extra careful and looking forward to obtaining a clearer sign regarding how GALA’s price will move.

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