GALA Price Gains 34%, Holding Strong — Breakout on the Horizon

Key Takeaways

• Falling wedge breakout attempt
• RSI shows a bullish divergence
• Key resistance at $0.033-$0.046

GALA has been in a prolonged downtrend but shows early signs of a potential reversal. The 4-hour chart suggests the correction might end, while the 1-hour chart highlights a possible breakout structure forming.

This could lead to a significant recovery toward key resistance levels if confirmed.

GALA Price Analysis 

GALA has been in a sustained decline following its peak at $0.067 in December, completing what appears to be a corrective ABC structure.

The 4-hour chart highlights a falling wedge, a historically bullish reversal pattern. The price recently tested the lower boundary of this wedge, near $0.021, aligning with the 0.786 Fibonacci retracement level, a strong historical support zone.

It briefly spiked to the $0.015 area but recovered by 56% to $0.025 on Feb. 4.

It is now sitting slightly lower, amounting to a recovery of 34% since its recent low. 

A notable bullish divergence on the RSI suggests declining selling pressure. Typically, such a divergence at the end of a wedge formation hints at an impending reversal.

However, confirmation is required through a breakout above the wedge resistance, currently around $0.026.

If a breakout occurs, the next immediate resistance is $0.033, corresponding with the 0.618 Fibonacci retracement.

Beyond that, $0.039 (0.5 Fib) and $0.046 (0.382 Fib) are key resistance levels that must be cleared for a broader trend reversal.

Failure to hold above $0.021 could invalidate the bullish setup, potentially driving GALA down to $0.015.

The ongoing price action suggests a critical inflection point, and traders should watch for volume confirmation to determine whether bullish momentum can take control.

GALA Price Prediction

The 1-hour chart presents a more detailed view of GALA’s potential reversal structure. A small bullish flag has formed within the larger wedge, suggesting accumulation near $0.021.

If GALA successfully breaks out from this short-term consolidation, the first target would be $0.026, marking the initial breakout level of the falling wedge.

A strong move above $0.026 could trigger a rally toward $0.033 (0.618 Fibonacci retracement). This level will be crucial, as breaking it would indicate a shift in market sentiment.

If GALA can sustain momentum, the next targets are $0.039 (0.5 Fib) and $0.046 (0.382 Fib), which align with prior structural resistances.

However, if the breakout fails and GALA gets rejected at $0.026, a retest of $0.021 is likely. A breakdown below this level would invalidate the bullish scenario and could push prices lower toward $0.015.

In summary, GALA is at a decisive point. A confirmed breakout above $0.026 could reverse the trend, with Fibonacci levels offering logical targets.

If the wedge pattern holds, a potential recovery toward $0.039-$0.046 is feasible in the coming sessions.

Key Levels to Watch

• Immediate Resistance: $0.033 (0.618 Fibonacci retracement).
• Key Resistance: $0.039 (0.5 Fibonacci retracement).
• Critical Resistance: $0.046 (0.382 Fibonacci retracement).
• Immediate Support: $0.021 (local bottom).
• Critical Support: $0.015 (1.0 Fibonacci retracement).
• Breakout Confirmation: Above $0.026 for a bullish reversal.