GALA Technical Analysis Feb 1

GALA continues in a downtrend with LH/LL structure; could breaking the $0.0043 support signal a trend change?

Market Structure Overview

GALA’s current market structure reflects a clear downtrend. The recently formed lower highs (LH) and lower lows (LL) pattern indicates dominant bearish momentum. The price is trading below EMA20 ($0.01), giving short-term bearish signals; Supertrend is also in a bearish position at the resistance level ($0.01). RSI at 26.21 is approaching the oversold region, while MACD confirms the downward pressure with a negative histogram. Multiple timeframes (MTF) identified 9 strong levels: 1D with 1 support/2 resistances, 3D with 1 support, 1W with 1 support/4 resistances. This structure presents a risky outlook for upside without breaking strong resistance. The market is in a critical gap while testing the $0.0043 swing low; a downward break opens the $0.0013 target, while an upward BOS could open doors to $0.0080. Check detailed data in GALA Spot Analysis and GALA Futures Analysis.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For an uptrend (HH/HL structure), higher highs and higher lows are required; however, this pattern is not observed in GALA. While the last swing low at $0.0043 (score:78/100) is holding, the next higher low formation starts by breaking the $0.0049 resistance ($0.0049, score:61/100). Breaking the $0.0052 swing high (score:65/100) with BOS could provide a CHoCH (Change of Character) signal, enabling a transition from HL to HH. If RSI shows divergence in oversold territory (26.21), it would support a bullish reversal; however, it is not reliable as long as MACD remains bearish. Bullish continuation target is $0.0080 (score:46), activated by crossing EMA20.

Downtrend Risk

The downtrend is solid with LH/LL: The last lower high at $0.0052 was rejected, lower lows dropped to $0.0043. This pattern confirms bearish continuation; BOS below $0.0043 creates a new LL, triggering the $0.0013 target (score:22). The 1W timeframe has 4 resistances suppressing upsides. Supertrend is bearish and BTC correlation aligns with downside; short-term LH/LL continuation is likely.

Structure Break (BOS) Levels

Main BOS levels: Upward BOS requires breaking the $0.0052 swing high (65/100), followed by $0.01 EMA20. This invalidates the downtrend structure and initiates a transition from HL to HH/HL – expect volume increase before CHoCH. Downward BOS: Breaking the $0.0043 swing low (78/100) validates the bearish structure with a new LL, opening the path to $0.0013. In MTF, 1D/3D supports are low-risk, 1W resistance is strong; bullish BOS is speculative without a close above $0.0052. BOS definition: Break of a swing point in the trend direction (continuation), otherwise a CHoCH reversal signal.

Swing Points and Their Importance

Recent Swing Highs

The last swing high at $0.0052 (score:65/100) formed an LH, confirming the downtrend; this is the main resistance, BOS expected. Second level $0.0049 (61/100), tested in minor. Breaking these points starts HH; failure invites LH continuation and downside. Aligns with 24h -1.67% drop, consolidating in $0.00 range.

Recent Swing Lows

The last swing low at $0.0043 (score:78/100) is strong support; LL formed here. A break disrupts the structure and opens bearish targets. Previous lows are supportive in MTF (1D/3D/1W); oversold RSI is important for bounce, but persistent negative MACD carries high downside risk.

Bitcoin Correlation

BTC at $76,742 (-2.74%) in downtrend; Supertrend bearish, supports at $75,720/$73,038/$64,655, resistance at $77,763. Altcoins like GALA have high correlation with BTC (80%+); if BTC falls below $75,720, GALA could lose $0.0043. BTC BOS at $77,763 triggers $0.0052 test in GALA, but rising BTC dominance crushes alts. Altcoin caution in BTC downside: GALA structure is BTC-dependent, aggressive short scenario below $73k.

Structural Outlook and Expectations

GALA structure in LH/LL downtrend; short-term bounce possible while holding $0.0043, but reversal not safe without $0.0052 BOS. Bearish scenario: Break of $0.0043 to $0.0013. Bullish: Cross of $0.0052/EMA20 to $0.0080. MTF resistance-heavy, high BTC bearish correlation risk. Structure analysis: Look for trend continuation BOS, wait for CHoCH for reversal. No news, technicals dominate. Check links for spot/futures; market volatile, manage risk.