Hey everyone! I know a few of you follow my ideas, so I thought I'd post this earlier rather than later—because I don't believe Gala's Wave 2 correction is over yet. After analyzing the price action and a few other key factors, I’ve re-evaluated my position, and things are pointing toward a more complex correction.
Corrections Are Like Driving at Night
Predicting corrections is tricky—it’s like driving at night. You plan your destination but can only see a couple of feet ahead at any given time. As the journey unfolds, your view becomes clearer.
Originally, I thought Gala had completed a straightforward ABC correction. But after reviewing Bitcoin's price action, Bitcoin dominance, and Gala's movement today, I believe we’re dealing with a more complex WXY correction.
What Is a WXY Correction?
In simple terms, it’s multiple corrective structures connected by smaller "X" waves:
Wave W: I believe this was Gala's first corrective wave, a zigzag (ABC correction).
Wave X: A smaller corrective wave that connects W to Y.
Wave Y: The next corrective structure, which could take the form of a zigzag, flat correction, or something else entirely.
I have highlighted this on the 4 hourly chart. I believe we have completed Wave W and I’m closely watching price action and looking for a good exit point around the top of Wave X.
Why Do I Think This?
Bitcoin Has More Downside Potential. I believe Bitcoin could revisit its previous ATH of ~73K. If this happens, it will have a significant impact on all altcoins, including Gala. (Check out my BTC idea posted today for more details.)
BTC Dominance Signals Market Weakness
In November, Bitcoin dominance rejected off the 0.618 level—just like it did in 2021. That event led to a 31% correction on Bitcoin, and corrections across the market. This could repeat. (Refer to my BTC.D idea posted today.)
Overbought Stochastic RSI
Many altcoins (including Bitcoin) have an overbought stochastic RSI on the weekly chart with a bearish crossover - illustrated above. This signals bearish momentum and has been a nagging red flag for me.
Timing Aligns with a Complex WXY
If Bitcoin’s correction takes another week or two to play out, it aligns with the possibility of Gala completing a WXY correction. Gala already finished an ABC correction, so this scenario seems logical.
Targets
Here’s what I’m watching for:
Possible exit target for Wave X: Around $0.40–$0.42, I think price will probably baournce off one of the EMA's.
Wave 2 Retracement: Could go as low as $0.17 without invalidating Wave 1 however price targets for Wave Y:
Target 1: 0.786 Fib Level at $0.02760.
Target 2: Weekly Support at $0.02449.
I don't know if this is the actual go, but I felt it prudent to share my thoughts so you can at least have time to decide for yourself.
I am still bullish, if you read my Bitcoin Dominance idea we are definitely looking good for an altcoin season we just need clarity on what Bitcoin is going to do. It really is at a junction point, of either going up or going down
