GALA, the token of layer-1 blockchain Gala, could be eyeing a sustained uptrend after its recent bounce to $0.014. This development comes after the cryptocurrency fell to its lowest value since October 2023 on Wednesday, April 9.
The initial drop suggested that GALA’s price might fall lower. But after macroeconomic tension eased, things changed.
But this rebound might not be the end of GALA’s recovery. This analysis reveals how GALA’s price could perform in the coming days.
GALA Token Shows Signs of Life
GALA’s price action over the last few months starkly contrasts with the last quarter of 2024, when the token’s value climbed to $0.067.
Today, GALA’s market value is $0.014, indicating that it has faced a prolonged correction. However, according to the daily chart, the price might not quickly return to its previous bearish phase.
One reason for this bias is the Chaikin Money Flow (CMF), which measures the level of accumulation and distribution around a cryptocurrency. When the CMF falls below the zero line, the trend is bearish and indicates selling pressure.
However, a rising CMF reading indicates buying pressure. As of this writing, the CMF on the daily GALA/USD chart has broken above the zero signal line, indicating rising buying pressure.
If sustained, GALA’s price might break above the upper trendline of the falling wedge. As shown above, the price is already flirting with the resistance at $0.015.
Selling Pressure Drops
Should buying pressure increase, the market value could be much higher in the coming days.
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Another indicator suggesting that the rebound could continue is the daily on-chain transaction volume in profit. When this volume rises, there is a lot of profit-taking, which could push the price down.
A decrease, on the other hand, indicates low selling pressure. On April 9, the daily on-chain transaction volume in profit was over 300 million. Today, that exact figure has dropped to 93.32 million.
If this figure continues to drop, GALA’s price might fail to see a notable correction in the short term.
GALA Price Analysis: Bulls Return After Deep Pullback
Like the CMF, the Money Flow Index (MFI) is breaking out of its downtrend. Although the MFI is yet to rise above the zero signal line, the change in trend suggests that GALA’s price might continue to increase.
If that is the case, the altcoin might bounce toward $0.023. Should buying pressure intensify, the token’s value might climb to the 0.618 Fibonacci ratio near $0.033.
However, this trend might not be the same if selling pressure increases again.
In that scenario, GALA’s price might break below the lower trendline of the falling wedge, causing its market value to slide below $0.011.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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