Market Remains Ambiguous: Gala Looks Good To Go. But is it?Before diving into Gala's current movement, it’s crucial to establish this foundational point: Wave 3 is only confirmed when the price breaks the high of Wave 1, which is $0.06667. Until that milestone is reached, any analysis remains speculative.
Previous Analysis Recap
In an earlier idea, we tracked a WXY correction with the Y wave targeting $0.02761 (0.786 Fibonacci level). However, after the Y wave played out for a few days, it became clear that we were correcting within a descending triangle. This pattern suggested the possibility of price movement in either direction.
While I anticipated a downward movement for Bitcoin and Gala, I was also prepared for an upward bounce.
Why I Anticipated a Downward Move?
Bitcoin's Unfinished Correction: In my Bitcoin analysis, I noted that Bitcoin likely hasn’t completed its full correction. During the last bull run, Bitcoin Dominance collapsed during Wave 4 corrections, paving the way for altcoin season. That hasn’t occurred yet, as Bitcoin Dominance remains high. A further price drop would align with the completion of this correction.
Shorter Corrections Are Unlikely: Historically, Bitcoin’s Wave 4 corrections have been deeper and longer, lasting around three months in the previous cycle. At present, Bitcoin’s correction is only 3.5 weeks in, suggesting more time may be required.
Current Developments
Instead of a deeper correction, Gala’s price bounced upward, potentially extending the overall corrective phase. While this could lead to further upward movement, it doesn’t entirely rule out the possibility of additional downside later.
Momentum Indicators Turn Positive:
Gala has already undergone a significant correction, nearly reaching the 0.786 Fibonacci level. Daily RSI indicators suggest there is enough momentum for the price to climb higher - A potential X wave could target $0.04407.
Future Scenarios:
I am open to this being Wave 3, but I am also open to this correction extending to a WXYXZ correction (they can go on forever technically). I can't predict where the X wave will end, and how deep the Z correction will be until X is complete.
However, for Wave 3 confirmation, Gala must surpass $0.06667. It’s worth noting that the X wave could climb as high as $0.06600 and still remain part of a corrective structure.
Perspective and Patience
This analysis serves as a reminder to maintain perspective. While the allure of immediate resolution is tempting, markets often operate on longer timeframes. Bitcoin’s current correction phase is relatively young compared to historical patterns, and this may apply to Gala as well.
Final Thoughts
At this stage, the market remains ambiguous, and interpretations may evolve as new data emerges. The charts provide valuable insights, but certainty is only achieved in hindsight. For now, tracking key levels will be critical to understanding Gala’s next significant move.
Stay flexible and prepared for either scenario as the market unfolds.
