Moving to the technical side, starting from the weekly time frame, the price has just formed a double top and has just completed its second top. Now this pattern according to the textbook shows bearish pressure. Talking about the volume and momentum, the bearish momentum is very strong at the moment. It is very likely that it pushes more, but the zone it is in right now can stop the momentum as well, as that’s a weekly Order Block.
Moreover, The last week was closed bullish which showed a reaction to that order block. So considering the number of buyers interested there, it can be observed that the price might reject more for some time. Moreover talking about that previous double top pattern, the price is at the neckline of that pattern. This does offer support to the price and can show support this time as well as it lies within a confluence of that weekly Order Block.
Moving down to the daily time frame, the price is created Lower Lows and Lower Highs and right now it possibly could have created a lower high or maybe not. Now as there is some liquidity and imbalance present upside which can drive the price upwards to fill the imbalance and clear the liquidity.
Lower Time Frame – GALA
Moving down to the 4 Hour Time Frame, the price has shown bullish order flow. As the price is very clearly breaking structure to the upside. When the price was pushing downside, it left an imbalance along the way which this bullish move is trying to fill. The price moreover is around in a demand area and a very strong one. As in the past, the price got some great bullish volume in the market. Some bulls might be interested to enter into that. The price has already been rejected off that level like 2 times.
It’s very possible that this rejection may induce more buyers in the market which then can push the price to the upside. Talking about the targets the level of $0.087 is a great one as that is a supply zone. A lot of bears entered the market from that level. The first target can be considered as the level of $0.0783 as that is an order block as well. Talking about the invalidation if the price violates the level of $0.06592, then this whole scenario would get invalidated.
