Is This the Start of a Major Rally for GALA/USDT?
Technical Analysis:
1. Double Bottom Formation and Reversal Signal:
- GALA/USDT has formed a double bottom pattern around the $0.01540 level, indicating a strong support zone and a potential reversal from the previous downtrend. This pattern is a classic bullish reversal signal, showing that buyers have stepped in at this level twice to stop the decline.
2. Key Levels and Confirmation Points:
- To add further confirmation to the bullish reversal, the price needs to break and hold above the $0.02225 level. This breakout would indicate a stronger shift in market structure, increasing the likelihood of a sustained bullish trend.
- The next key resistance level to watch after $0.02225 is $0.03440. A break above this level would further solidify the bullish reversal, potentially leading to a more significant rally.
- A crucial level beyond this is $0.06000. If the price can overcome this resistance, it could trigger a more extended rally, aligning with the long-term reversal scenario.
3. Potential Upside Targets:
- The initial upside target following a confirmed breakout is around $0.03440. Successfully breaking through this level would suggest that the bullish trend is gaining strength.
- A projected extension target based on the double bottom formation is set at $0.0750, representing an impressive 280% potential upside from the current price levels.
4. Change of Character (ChoCH) and Market Structure:
- The Change of Character (ChoCH) marker on the chart indicates a shift in the market structure, providing an early signal that the downtrend may be ending. This aligns with the potential bullish breakout and double bottom formation, adding further weight to the bullish outlook.
- The price needs to continue holding above key support levels and break through resistance, particularly the $0.02225 level, to maintain this change in character and sustain the upward momentum.
5. Risk Management and Entry Strategy:
- Given the current setup, it’s crucial to manage risk by setting a stop-loss below the support at $0.01356. This would protect against a potential false breakout and a return to the downtrend.
- Traders may consider entering on a confirmed breakout above the $0.02225 level or on pullbacks towards this level for additional confirmation of the bullish trend.
6. Conclusion:
- GALA/USDT is showing strong signs of a bullish reversal with a confirmed double bottom pattern, a breakout above descending trendline, and a marked Change of Character (ChoCH). The key confirmation point to watch is the $0.02225 level, followed by potential upside targets at $0.03440 and $0.0600. Traders should look for continued confirmation and manage risk appropriately around key support levels.
What's your take on GALA/USDT's double bottom breakout? Do you see this as a strong reversal opportunity, or are you waiting for further confirmation at key levels? Share your insights and strategies for navigating this setup.
_________________________________________________________________
The information and publications within the 3Commas TradingView account are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 3Commas and any of the parties acting on behalf of 3Commas, including its employees, contractors, ambassadors, etc.
🤖 It's time to trade smarter with 3Commas!!
📣 Sign up to get up to 10% off
👉 bit.ly/3XCInKB
📣 Sign up to get up to 10% off
👉 bit.ly/3XCInKB
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.