This technical analysis article analyzes the price movements of Gala Games (GALA) using the daily and weekly charts, based on key support and resistance levels and RSI indicators.
Gala Game’s token migration has been met with mixed reactions. Some believe that it is a positive step for the token, as it will allow the company to have more control over the tokenomics of GALA and move to a more scalable blockchain. Others believe that the token migration is unnecessary and that it has created confusion among users.
Nevertheless, let us examine the price movements of the token to gain insights into its potential future trajectory.
Daily Chart
Looking at the daily chart, we observe a swing low in December 2022 and a swing high in January 2023. Currently, GALA is experiencing a retracement towards the support level established between $0.0184 and $0.0168. The price briefly retested this support on June 9th, 2023, and has since been recovering with a notable impulsive move to the upside. However, GALA is currently facing a resistance block, which previously acted as support, ranging from $0.02824 to $0.02384.
Despite concerns surrounding the token migration and some selling pressure, the chart does not appear significantly bearish. If a retracement occurs, the token of Gala Games could potentially enter the last support block and consolidate, presenting an accumulation opportunity before an upward move.
Additionally, there is a resistance trend line that has been capping the price since January 2023, with a brief fakeout in April. GALA might encounter this trend line again, potentially leading to a breakout or rejection.
Daily RSI
Analyzing the daily RSI, we observe that GALA is currently oscillating between a support and a resistance level. Several balances have occurred, with the most recent one in June, followed by an upward move. If the RSI reaches the resistance trend line once again, traders looking for swing trades or profit-taking opportunities might consider selling. A breakout beyond the resistance trend line could push the RSI into the overbought area (above 70) due to increased volume supporting the breakout.
Weekly Chart
On the weekly chart, we can see GALA being supported by an ascending trend line, with bounces occurring in December 2022 and June 2023. This pattern resembles the situation observed in our previous technical analysis article on Solana (SOL). GALA is currently in a similar pattern, with the price approaching the apex of a symmetrical triangle formation between the support and resistance trend lines.
The resistance block between $0.11 and $0.08 poses a significant level to watch, as it previously acted as crucial support before being lost in May 2022. A successful backtest of this resistance-turned-support level could occur if a breakout happens in the coming months.
Furthermore, it is essential to monitor the 55 EMA on the weekly chart, which serves as a notable resistance level. A breakthrough above this level would be significant, while repeated candle closes below it might signal a return to the immediate support level below.
Considering the weekly chart, GALA presents a compelling buying opportunity, as it is currently in proximity to the ascending support trend line. Historical price action indicates that previous touches of this support level have often resulted in substantial impulsive moves to the upside.
Weekly RSI
Examining the weekly RSI, we can identify an ascending support trend line that could serve as a potential entry point during future bounces. Additionally, a symmetrical triangle pattern can be observed, suggesting the possibility of a breakout in the future.
Final Thoughts
Based on the technical analysis of Gala Games (GALA), the charts indicate the potential for a breakout in the coming months. Key levels of support and resistance, as well as the RSI indicators, provide insights for traders and investors. However, it is crucial to monitor the price’s reaction to resistance levels and trend lines, as they will play a significant role in determining the future trajectory of GALA. As always, it is recommended to conduct further research and consider additional factors before making any investment decisions.