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GALA Technical Analysis: Bears Overtake Trend Within Flag Pattern 

cryptoknowmics.com 06 January 2022 11:26, UTC
Reading time: ~2 m

The GALA coin price shows a downfall within the flag pattern as it breaks below the crucial support level of $0.42. Is this the end of Meta-craze?

Gala Games desires to drive the gaming industry to a new and uncharted path by giving users control over their games. Its mission is simple: make 'blockchain games you'll want to play.' Eric Schiermeyer, the co-founder of Zynga, founded it.

Users can run Gala Nodes that support the network. They receive bonuses like tokens, limited edition NFTs, and other opportunities.

Let us move ahead to read about the Gala Games technical analysis.

Past Performance of GALA

The GALA coin price fell more than 50% in the past six weeks. The downfall makes a wedge pattern, however, the previous bull run makes it a flag pattern in the big picture. The recent fall of 35% in the past few days breaks below the crucial support of $0.42. Therefore, it is evident that bulls are losing control of the trend.

GALA/USD Daily Chart

GALA Technical Analysis

GALA coin price halts the downfall near the support trendline of the wedge pattern. However, the increased trend momentum and the fallout of $0.42 increase the chances of a bearish breakout.

The RSI indicator at 36% slides deeper into the nearly oversold zone and continues its approach to the oversold zone. Therefore, the indicator gives a sell signal.

The MACD indicator reflects a rising bearish trend of histograms, with the MACD and signal lines breaking below the zero line. Moreover, the gap between the lines is increasing, which can prove fatal for bullish hopes. 

If the prices fall below the support trendline and give a bearish breakout, then traders can conclude a break in Meta-craze.

Upcoming Trend

The GALA coin price falls into the wedge pattern and shows increased chances of fallout. Moreover, the price shows higher price rejection and downtrend continuation after the bearish engulfing candlestick. 

Traders can find selling opportunities upon the fallout of the pattern, with the next prominent support levels at $0.22 and $0.074, respectively. In case of a bullish reversal or breakout, the resistance levels are at $0.53 and $0.63.

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