On December 23rd, I shared my observation that Gala was still undergoing a correction. I proposed it might be following a WXY corrective pattern rather than a straightforward ABC correction (see idea here). The key distinction is that an ABC correction is a single structure, while a WXY correction consists of multiple corrective structures linked by an X wave, as illustrated above on the 4-Hourly Chart.
Following changes in price action on December 24th, I posted a bullish scenario for Gala. However, it now seems that my original WXY correction analysis from December 23rd is playing out after all—apologies for the premature bullish outlook.
What did I overlook? One metric that has consistently stood out to me on the weekly chart is the Stochastic RSI, which I’ve included in all my posts. It has remained bearish, and ideally, I would prefered it to drop into the oversold region before expecting the next leg up. While it isn’t a strict requirement, historical patterns strongly suggest that this should happen. In my last post, I reluctantly considered the possibility that this time might be different—but I now see that patience is a virtue and just a reminder to trade the charts.
The WXY corrective structure is clearly visible on the 4-hour chart, and I anticipate the following moves:
A drop to weekly support at $0.2961.
A potential further drop to either the 0.786 level at $0.2761 or lower support at $0.0249.
What’s Next?
We are in the final stages of this correction, and it is likely to conclude within the next 7–10 days. My bullish scenario from December 23rd still holds, but it was shared prematurely.
I am actually very happy to see the weekly RSI moving down to the oversold region, history shows that most big moves happen when the weekly is in the oversold region. With most coins being in the overbought area this has been an point of concern for me. I have illustrated this point in this idea - click here.
Ami 🚨🚨
👉Keep an eye on the charts and your portfolio, and remember: DYOR -Crypto is always changing, so stay informed before jumping in! 🚀💸
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