We are at a pivotal moment. After reviewing my charts, I want to revisit my previous analysis where I illustrated that Gala is currently in a WXY correction, with the Y wave unfolding. Initially, I expected the Y wave to develop as a Zig-Zag correction, but as time has passed, it appears more like a descending triangle. Whilst a descending triangle is considered bearish, in context to the overall correction it could also be considered a consolidation pattern signaling a pending bullish breakout into Wave 3.
Right now, price action is nearing the apex of the triangle, which means a decisive move—up or down—should occur imminently. For this reason my bias has now changed to neutral and I am looking for a bullish or bearish signal to happen.
Bullish Case
Price is currently struggling beneath the 26-day and 50-day EMAs, creating diagonal resistance. For a bullish scenario we are looking for a clear break above these EMAs on the 4-hour chart would provide a reasonable signal that the Y wave is complete and that bullish momentum may be returning.
That said, a WXY correction is inherently complex and could morph into another X wave followed by additional corrective patterns. In such a scenario, an upward impulse might still emerge, but the structure would need to be reevaluated.
Bearish Case
On the downside, price needs to decisively break below $0.03454 to confirm further bearish movement. This level has held as support so far, but the situation remains precarious.
Key points to watch:
The 200-day EMA on the daily chart is around $0.0314. A sustained close below this level would be highly bearish and signal deeper corrections ahead.
A descending triangle, if confirmed, is traditionally a bearish continuation pattern. The measured move from the height of the triangle would target the 0.786 Fibonacci level at $0.02794.
Additionally, order book analysis on Binance reveals significant buy orders clustering around $0.026 and $0.025. While this shows strong demand at lower levels, it also highlights that many market participants are anticipating further downside. This doesn’t guarantee a drop to those levels, but it’s something to keep in mind.
Summary
At this point, I’m adopting a neutral bias.
A breakout above the triangle and EMAs would prompt me to consider entering the market, as it would signal the completion of the corrective phase.
Conversely, a breakdown below $0.03454, especially with daily or 4-hour candle closes under the 200-day EMA ($0.0314),** would signal a bearish continuation, and I’d prepare to fill positions near my targets around $0.02794 or lower.
If I had to speculate, I’m leaning toward the possibility of a flash crash. Here’s why:
If the price is to break down, I would not want it to stay below $0.0314 for long.
A candle close below this level on the daily chart, or even prolonged trading under it on the 4-hour, would place price action below the 200-day EMA. This is highly unusual for a bull market and could signal a deeper correction.
That said, markets can surprise, and we’ll likely have clarity within the next 24 hours. Until then, I’m watching closely and staying flexible. Let’s see how this unfolds.