GALA Technical Analysis Feb 23

[ENGLISH: GALA is maintaining its downtrend structure with LH/LL; if the last swing low $0.0033 support breaks, bearish BOS will trigger, otherwise above $0.0049 it may give bullish CHoCH signal.]

Market Structure Overview

GALA’s current market structure indicates a clear downtrend. Instead of higher highs/higher lows (HH/HL), the lower highs/lower lows (LH/LL) pattern dominates; recently, the price has reinforced the bearish structure by failing to break previous swing highs and renewing swing lows. In multi-timeframe (MTF) analysis on 1D, 3D, and 1W charts, a total of 6 strong levels were identified: predominantly supports (1D:1S/0R, 3D:1S/1R, 1W:2S/2R). Trading below the short-term EMA20 (around $0.00), Supertrend bearish signal, and RSI at 30.07 near oversold territory show weak momentum. Although the MACD histogram is neutral at the zero line, the overall structure emphasizes the criticality of the $0.0033 swing low for trend continuation. This analysis is price action focused, based on Devrim Cacal’s methodology using swing points, BOS, and CHoCH definitions.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For a bullish trend, HH/HL structure is required: formation of successive higher highs and higher lows. This pattern is not observed in GALA currently; recent swing highs have not been broken, and the price is stuck below $0.0049 (bullish continuation target, score:25/100). A potential bullish signal could come with a close above $0.0049 – this would surpass the last LH and initiate HL structure. RSI not dropping below 30 leaves room for short-term reaction buys, but the EMA structure maintains bearish dominance. In MTF, 2 support levels on the 1W timeframe offer hope for long-term recovery, though volume-less moves could invalidate them.

Downtrend Risk

The downtrend is confirmed with LH/LL: last swing low $0.0033 (score:70/100) has potential to renew previous lows. 24-hour -6.05% loss reflects bearish momentum in the narrow range $0.00-$0.00. Bearish breakdown target $0.0017 (score:22/100); a break below $0.0033 triggers aggressive LL pattern and confirms CHoCH in the bearish direction. Supertrend resistance around $0.00 is suppressing the price. To watch: LL continuation without new LH formation strengthens the trend.

Structure Break (BOS) Levels

BOS (Break of Structure) is the key to trend change: bullish BOS with last swing high (strong close above $0.0049), bearish BOS with last swing low (below $0.0033). In the bullish scenario, a break above $0.0049 shifts the structure to HH/HL and opens $0.0055+ targets. In bearish BOS, a break below $0.0033 paves the way to $0.0017 – this level coinciding with MTF supports could initiate a cascade drop. For CHoCH (Change of Character), displacement (volume-backed break) is required; current neutral MACD warns against fakeouts. Key: 1D closes confirm BOS.

Swing Points and Their Importance

Latest Swing Highs

No strong swing high (score >=60 absent); nearest resistance band $0.00-$0.0049. These levels form the LH pattern – a breakout would signal trend reversal. Previous swing highs (MTF 3D/1W) indicate accumulated liquidity in $0.0050+ regions; HH is impossible without testing them. Importance: Retests are critical for liquidity sweeps.

Latest Swing Lows

Last swing low $0.0033 (70/100 score), main support – a break here triggers bearish BOS. In MTF, 1D/3D/1W supports (total 4S) show clustering in $0.0030-$0.0025 range. Holding above $0.0033 is required for HL structure; oversold RSI offers bounce potential but BTC correlation is risky.

Bitcoin Correlation

BTC $65,785 (-3.31%) in downtrend; key supports $64,183/$62,591/$60,000, resistances $65,920/$68,225. BTC Supertrend bearish and rising dominance are pressuring altcoins like GALA – correlation high, a BTC break below $64K accelerates GALA $0.0033 test. BTC recovery above $65,920 lights green for altcoin rally; GALA BOS levels should be monitored in sync with BTC moves. Follow BTC context in GALA Spot Analysis and GALA Futures Analysis.

Structural Outlook and Expectations

Overall outlook bearish: LH/LL structure intact, $0.0033 critical threshold. LL renewal expected for trend continuation, $0.0049 BOS for reversal. Educational note: Market structure is dynamic – swing points define liquidity pools, BOS/CHoCH determine trade bias. No news requires pure price action focus. Short-term oversold bounce possible but BTC downtrend limits alts. Long-term MTF supports ($0.0025+) offer buffer before deep correction. Speculation risky without structure break; integrate spot and futures analyses.