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Will This Pattern Breakout Lead To Longer Price Recovery?

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Published 8 hours ago

The GALA prices shoot up with a double bottom breakout and a high possibility of a bullish crossover in the EMAs. Thus, the uptrend breaks above $0.060 and prepares to reach the overhead resistance of $0.069 as the buying pressure increases for the gaming token. Should you consider entering this breakout rally, or will the candle closing fail to sustain above the neckline?

Key points: 

  • The GALA price exceeds the double bottom’s neckline at $0.063.
  • The 20-day EMA prepares to cross above the 50-day EMA.
  • The intraday trading volume in the GALA is $479.2 Million indicating a 4.1% loss.

GALA/USDT ChartSource- Tradingview

The GALA sellers overtook the trend control on July 19, resulting in a downtrend from the 50-day EMA resulting in a price drop of 20% to reach the bottom support at $0.046. Moreover, the bearish trend even broke the 20-day EMA, but the buyers quickly regained trend momentum resulting in a V shape reversal. 

The bullish reversal from $0.046 led to the formation of a double bottom pattern in the daily chat with the neckline at the $0.058 mark. 

Today the bullish growth of 5.02% drove the GALA prices above the neckline resulting in a bullish breakout. Furthermore, the V-shaped reversal increases the bullish influence over the 50 and 20 EMA, teasing a crossover event. 

Therefore, if the daily candle closes above the neckline at $0.063, the breakout rally might succeed in reaching the overhead resistance at $0.069.

Conversely, higher price rejection in the daily candle driving it below the neckline will nullify the breakout rally.

Technical Indicator

RSI indicator: The Daily-RSI slope shows a bullish trend in motion spiking above the halfway line, reflecting an increase in the underlying bullishness. Moreover, the positive trend in the 14-day SMA reflects a solid bullish momentum. 

EMAS: The bullish crossover of the 20 and 50-day EMA will result in an increase in buying pressure. 

  • Resistance level- $0.069 and $0.80
  • Support levels- $0.059, and $0.051

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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