This week, users of the Whitebit exchange voted for us to do a review and technical analysis of Project Galaxy
The trading pair GALUSDT on both Whitebit and other top exchanges was listed at the beginning of May, that is, just 3 weeks ago. The trading history is too small to make global forecasts, so we will try to analyze the local trading situation.
On the 11th of May at noon the price of Gal cryptocurrency has fixed the local minimum of $2.17, where it started to be bought aggressively, and in not full 2 days the asset rose in price almost 4 times from $2 to $8. High volatility, high risks, but also high yield. The interesting fact is that the bounce up of the GAL price occurred almost a day earlier than the bounce of the BTCUSDT price in the morning of 12.05.
Looking at the chart now, it looks like the correction channel, in which the accumulation of positions continues, is approaching to the end, and the result might be quite a strong shot up.
Therefore, we consider the $3.90-4.50 zone weighted to try to gain a moderate long position.
The upside targets GAL cryptocurrency on the chart are $8 and maybe even $9.50-11.50
But since this coin has no much trading history – there are no strong resistance or support levels on the chart. The whole struggle of buyers and sellers is in the future, so anything is possible: a strong rise and a strong fall (though we consider the chance of fall as the smaller one).
And now only 18% of the maximum number of coins is in circulation on the trading market now, and the increase of supply on the market may start to press the price.
To summarize: taking a small and moderate long in the $3.90-4.50 zone is justified in this cryptomarket phase, but the high volatility of this asset makes you ready to use stop orders on the position or be prepared for a drawdown of 20-30%.
