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- The GALA price faced a rejection from the 200-day EMA.
- With increased supply, GALA‘s price may face a significant drop ahead.
In recent sessions, Gala (GALA), an Ethereum-based asset, has seen a significant price rally. However, the token has given a breakout but failed to cross the 200-day EMA mark.
A long-legged doji candlestick was formed close to the 200-day EMA mark. Also, a follow-on selling pressure was noted during the intraday session.
In a week, the GALA price has surged more than 40% and surpassed the neckline hurdle of $0.02400. Meanwhile, the lack of volume spurt threatens investors’ ability to determine whether the recent price rally is sustainable.
GALA Price Prediction: Bulls Have a Challenge Ahead
GALA price was trading at the 200-day EMA hurdle, and the bulls were trying for a breakthrough. Furthermore, a rejection doji candlestick was exhibited, meaning a supply region.
The price action indicated that the token has gained significant bullish momentum. The GALA crypto has surpassed the 50-day and 100-day EMA. However, the bulls are challenged to cross the 200-day EMA and aim for a breakout beyond the $0.0300 mark.
The Relative Strength Index (RSI) line rested around 62, conveying bullish cues. It replicated a positive crossover and suggested a significant surge ahead. In a recent tweet, Steph, a crypto analyst, went bullish on the GALA token. He predicted a 2700% surge in the next few weeks.
The GALA price was trading at $0.02561, noting an intraday decline of over 7.20%. The trading volume dropped over 30%, replicating lower seller interest. With a market cap of $911.24 Million, the token ranked 82nd among the top crypto coins.
On-Chain Data Signals Bullishness
Data from IntoTheBlock highlighted that GALA has a positive net network growth of 0.12%. That conveyed the growing investor confidence in the ecosystem. Additionally, the crypto whales were moving the price higher, as a 12% rise in whale transactions was noted. This was a bullish sign.
Typically, an uptick of over 12% signaled that smart money has entered the trade. It might reduce the available supply and could boost the price.
Additionally, whale buying activity often boosted retail investor confidence. This led to more buying activity and sustained price growth. However, some whales have taken advantage of GALA’s 40% surge rally. They have sold some of their holdings for profit in the last 48 hours.
What Does Futures Market Data Signal?
Data from Coinglass hinted that a total of $1.04 Million of liquidations were noted in the past 24 hours. Around $968k worth of longs and $78k worth of short liquidations were stressed.
This outcome suggested that the pullback after a rejection from the 200-day EMA mark has resulted in longs being wiped out. Moreover, the Open Interest (OI) has dropped over 11.35% to $82.12 Million, implying a long unwinding move over the past 24 hours.
The immediate support zones of the GALA price were $0.02480 and $0.2300. At the same time, the resistance levels were $0.02700 and $0.02900.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
