According to the website - By CoinoMedia
GALA is sending warning signals on the daily chart. The altcoin has formed a 'Head and Shoulders' pattern - a classic technical indicator that often signals a trend reversal. The price has broken the support level of the neckline at $0.017, indicating a clear dominance of bearish sentiment.
'Head and Shoulders' formation is considered one of the most reliable reversal patterns in technical analysis. It consists of three peaks: the middle one is the highest ('head') and two smaller peaks on the sides ('shoulders'). The neckline serves as a support level, and a confirmed break below it usually provokes a deeper decline.
In the case of GALA, the breakout is confirmed, indicating the potential for further decline.
Attention is focused on the support zone of $0.012.
Now that the neckline at $0.017 has been broken, all eyes are on the next key level: $0.012. This area previously served as strong support and could become the next potential bounce zone.
However, if GALA does not quickly reclaim the neckline, the path of least resistance will remain downward. Volume has also increased during the breakout - a typical sign that sellers are taking control of the market.
For traders, this configuration serves as a clear alarm signal. Short-term rallies are possible, but the overall structure now leans towards a bearish trend unless a bullish catalyst emerges.
If you hold GALA, it's time to reconsider your strategy. Risk management becomes critically important here. Traders may look for signs of stabilization near the $0.012 level before opening new positions. On the other hand, aggressive short sellers may already be targeting this zone.
As always, technical patterns do not guarantee success, but they become a valuable tool, supported by volume and context, as is currently seen in the case of GALA.
