GALA Eyes Key Moving Average With Low Risk of Price Volatility
2024-07-29
Category: gaming

Gala’s GALAUSD 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. 
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.