GALA / TetherUSShort
Wow what a correction! Price Targets Met
The recent price action for GALA has been nothing short of dramatic. In just one 4-hour candle, we saw a sharp correction down to the 0.786 Fibonacci Level ($0.040), where price wicked strongly before recovering. Here's a breakdown of my trade, analysis, and expectations moving forward. This is just a quick update given the epic drop, I will wait until the Daily and 4 Hourly candle closes before deciding on what next.
My Trade Strategy
Exit and Re-entry:
I initially placed a buy order at the 50% Fib level but canceled it upon observing the strength of the candle. Instead, I purchased closer to the Golden Pocket (0.618–0.786 Fib levels), which worked well. Price ultimately wicked down for a hot minute to $0.040 (0.786 Fib level), if you got in then - congratulations.
Analysis Overview
Daily Time Frame (Higher Time Frame)
My bias remains bearish in the short term until momentum indicators confirm a trend reversal.
4-Hourly Time Frame (Lower Time Frame & Entry/Exit Signals)
Momentum indicators are positive here, showing signs of a potential short-term bounce.
Price appears to be consolidating, possibly forming a triangle or channel pattern, suggesting accumulation before the next significant move.
I expect price to bounce around within a triangle or channel, building momentum for the next leg. This correction might take a few days to a few weeks to play out, so patience is key.
Monthly Momentum: All indicators remain positive on the monthly time frame, reinforcing a long-term bullish outlook. This current correction is likely just a healthy retracement.
Key Levels to Watch
Support:
My Trade Strategy
Exit and Re-entry:
- Sold at $0.05902 during the initial spike.
- Re-entered at $0.0445, successfully preserving my balance and picking up additional coins during the dip.
I initially placed a buy order at the 50% Fib level but canceled it upon observing the strength of the candle. Instead, I purchased closer to the Golden Pocket (0.618–0.786 Fib levels), which worked well. Price ultimately wicked down for a hot minute to $0.040 (0.786 Fib level), if you got in then - congratulations.
Analysis Overview
Daily Time Frame (Higher Time Frame)
- RSI: Still not overbought, which is a positive sign for future upward momentum.
- Stochastic RSI: Buying momentum is declining. I will wait for the K-line to cross above the D-line as confirmation of a bullish reversal.
- Rate of Change (ROC): Currently declining, aligning with bearish price momentum.
My bias remains bearish in the short term until momentum indicators confirm a trend reversal.
4-Hourly Time Frame (Lower Time Frame & Entry/Exit Signals)
Momentum indicators are positive here, showing signs of a potential short-term bounce.
Price appears to be consolidating, possibly forming a triangle or channel pattern, suggesting accumulation before the next significant move.
I expect price to bounce around within a triangle or channel, building momentum for the next leg. This correction might take a few days to a few weeks to play out, so patience is key.
Monthly Momentum: All indicators remain positive on the monthly time frame, reinforcing a long-term bullish outlook. This current correction is likely just a healthy retracement.
Key Levels to Watch
Support:
Disclaimer
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