GALA Eyes Key Moving Average With Low Risk of Price Volatility
Gala’s (GALA) recent uptick has pushed its price above its 20-day exponential moving average (EMA). The altcoin is now moving toward its 50-day simple moving average (SMA).
As it attempts to cross above this key moving average, market volatility has declined, suggesting that GALA now trends within a narrow range .
Gala Market Cools as Token Approaches Key Moving Average
An asset’s 20-day EMA measures the average price of an asset over the past 20 trading days. Its 50-day SMA, on the other hand, calculates its average closing price over the past 50 days.
When an asset’s price rises above its 20-day EMA, it indicates the beginning of short-term bullish momentum. If the price approaches and surpasses the 50-day SMA, the uptrend may extend beyond the short term.
As GALA approaches its 50-day SMA, market volatility has reduced. This is based on readings from some of the token’s volatility markers. For example, GALA’s Average True Range (ATR), which measures its volatility over a specified period, has trended downward since the beginning of July. At 0.0018 at press time, GALA’s ATR has since fallen by 28%.
When an asset’s ATR declines, it indicates a decrease in market volatility. It means that its daily price movements are decreasing, suggesting that the market is less prone to price swings.
Following a similar trend, the token’s Chaikin Volatility has also declined. At press time, the indicator is below its center line at -9.37.
Read More: how to buy GALa (GALA) and Everything You Need to Know
This metric also tracks an asset’s market volatility. When it declines, it suggests that the market is experiencing smaller price swings. This is often a sign of consolidation or a marker of reduced market activity .
GALA Price Prediction: Altcoin Has to Break Above Narrow Range
For a successful rally past the 50-day SMA, GALA has to break above the upper line of its horizontal channel, which forms resistance at $0.026. If this happens, the altcoin will rally to trade at $0.034.
However, if buying pressure remains low, GALA will continue to trend within the channel and may fall to support at $0.018 if bearish sentiment lingers .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ripple announces tokenized money market fund launching on XRP Ledger
Ripple said a tokenized money market fund has launched on the XRP Ledger.The launch was made possible through a partnership with Archax, an FCA-regulated digital asset exchange.
The Daily: MicroStrategy buys record $5.4 billion in bitcoin, Sky Mavis cuts 21% of its workforce and more
Business intelligence firm and corporate bitcoin holder MicroStrategy purchased another 55,500 BTC for $5.4 billion between Nov. 18 and Nov. 24, according to an 8-K filing with the SEC on Monday.Axie Infinity crypto game developer Sky Mavis is laying off 21% of its workforce, affecting about 50 of its 250 global team, amid a “shift in priorities,” according to CEO and co-founder Trung Nguyen.Solana’s decentralized exchanges surpassed $100 billion in monthly trading volume for the first time, generating a r
Justin Sun's Tron buys $30 million of Trump-backed World Liberty Financial tokens
Tron founder Justin Sun said his firm has bought $30 million worth of World Liberty Financial tokens, the crypto project supported by newly-elected U.S. President Donald Trump.Sun said the purchase made Tron the largest investor in World Liberty Financial.
Elon Musk, the world’s richest man, hits record $348B net worth