NOIDA (CoinChapter.com) — Gala Games native token, GALA, invalidated a bullish technical pattern following the recent crypto market flash crash. Unfortunately, the price drop has added to the bearish cues against the token.
Gala Games recently updated its node reward distribution system and proposed a new referral incentive scheme as part of a strategic update. The updates should have helped the platform’s GALA token rally higher.
The upgrade aims to accurately reflect the contributions of node operators within the Gala ecosystem.
Moreover, the rollout of Node Workload NFTs could be another bullish cue for the Gala Games price. By granting node operators greater autonomy and flexibility in their contributions, these NFTs could potentially increase the attractiveness of operating Gala nodes.
Yet, the crypto market flash crash wreaked havoc on Gala Games’ bullish cues.
GALA Price Moving Inside Bearish Pattern
The GALA token has formed a bearish technical pattern called the ‘Descending Triangle.’
Market analysts predominantly consider the descending triangle a bearish continuation signal in a technical chart pattern. A downward-sloping upper trendline characterizes this pattern, with declining resistance levels that progressively lower the peaks of the price action.
Additionally, a horizontal lower trendline acts as support, maintaining a consistent low point that the price struggles to breach. The formation indicates that selling pressure is gradually increasing, overcoming the buying interest, as each rally is weaker than the last.
In a descending triangle setup, the height of the triangle’s thickest section determines the price target. If the bearish pattern pans out, the GALA coin price could drop over 62% to reach the projected price target near $0.0154.
Another Bearish Cue In The Charts For GALA
Another bearish cue for the Gala Games token comes from its 20-day EMA (red wave) potentially moving below the token’s 50-day EMA (purple wave) to form a bearish pattern called the death cross.
Traders consider the pattern an indicator of negative market sentiment. As such, the Gala Games token price could drop to support near $0.036. Moreover, breaching below the immediate support might push the GALA price to the support near $0.0303.
The bulls have their work cut out if they plan to start an uptrend for the token in the face of the token’s bearish cues. A rally from here would result in GALA price facing the 100-day EMA (blue wave) resistance near $0.0454.
Moreover, breaking and consolidating above the immediate resistance might help the Gala Games token price rally to the 50-day EMA resistance near $0.052 before paring gains.
The RSI for GALA remained neutral, with a score of 35.85 on the daily charts.
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