The Moment of Truth - Gala's Bottom Could Be In
We are at a pivotal moment. After reviewing my charts, I want to revisit my previous analysis where I illustrated that Gala is currently in a WXY correction, with the Y wave unfolding. Initially, I expected the Y wave to develop as a Zig-Zag correction, but as time has passed, it appears more like a descending triangle. Whilst a descending triangle is considered bearish, in context to the overall correction it could also be considered a consolidation pattern signaling a pending bullish breakout into Wave 3.
Right now, price action is nearing the apex of the triangle, which means a decisive move—up or down—should occur imminently. For this reason my bias has now changed to neutral and I am looking for a bullish or bearish signal to happen.
Bullish Case
Price is currently struggling beneath the 26-day and 50-day EMAs, creating diagonal resistance. For a bullish scenario we are looking for a clear break above these EMAs on the 4-hour chart would provide a reasonable signal that the Y wave is complete and that bullish momentum may be returning.
That said, a WXY correction is inherently complex and could morph into another X wave followed by additional corrective patterns. In such a scenario, an upward impulse might still emerge, but the structure would need to be reevaluated.
Bearish Case
On the downside, price needs to decisively break below $0.03454 to confirm further bearish movement. This level has held as support so far, but the situation remains precarious.
Key points to watch:
Additionally, order book analysis on Binance reveals significant buy orders clustering around $0.026 and $0.025. While this shows strong demand at lower levels, it also highlights that many market participants are anticipating further downside. This doesn’t guarantee a drop to those levels, but it’s something to keep in mind.
Summary
At this point, I’m adopting a neutral bias.
If I had to speculate, I’m leaning toward the possibility of a flash crash. Here’s why:
That said, markets can surprise, and we’ll likely have clarity within the next 24 hours. Until then, I’m watching closely and staying flexible. Let’s see how this unfolds.
Right now, price action is nearing the apex of the triangle, which means a decisive move—up or down—should occur imminently. For this reason my bias has now changed to neutral and I am looking for a bullish or bearish signal to happen.
Bullish Case
Price is currently struggling beneath the 26-day and 50-day EMAs, creating diagonal resistance. For a bullish scenario we are looking for a clear break above these EMAs on the 4-hour chart would provide a reasonable signal that the Y wave is complete and that bullish momentum may be returning.
That said, a WXY correction is inherently complex and could morph into another X wave followed by additional corrective patterns. In such a scenario, an upward impulse might still emerge, but the structure would need to be reevaluated.
Bearish Case
On the downside, price needs to decisively break below $0.03454 to confirm further bearish movement. This level has held as support so far, but the situation remains precarious.
Key points to watch:
- The 200-day EMA on the daily chart is around $0.0314. A sustained close below this level would be highly bearish and signal deeper corrections ahead.
- A descending triangle, if confirmed, is traditionally a bearish continuation pattern. The measured move from the height of the triangle would target the 0.786 Fibonacci level at $0.02794.
Additionally, order book analysis on Binance reveals significant buy orders clustering around $0.026 and $0.025. While this shows strong demand at lower levels, it also highlights that many market participants are anticipating further downside. This doesn’t guarantee a drop to those levels, but it’s something to keep in mind.
Summary
At this point, I’m adopting a neutral bias.
- A breakout above the triangle and EMAs would prompt me to consider entering the market, as it would signal the completion of the corrective phase.
- Conversely, a breakdown below $0.03454, especially with daily or 4-hour candle closes under the 200-day EMA ($0.0314),** would signal a bearish continuation, and I’d prepare to fill positions near my targets around $0.02794 or lower.
If I had to speculate, I’m leaning toward the possibility of a flash crash. Here’s why:
- If the price is to break down, I would not want it to stay below $0.0314 for long.
- A candle close below this level on the daily chart, or even prolonged trading under it on the 4-hour, would place price action below the 200-day EMA. This is highly unusual for a bull market and could signal a deeper correction.
That said, markets can surprise, and we’ll likely have clarity within the next 24 hours. Until then, I’m watching closely and staying flexible. Let’s see how this unfolds.
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