Gala has corrected after a sharp rejection at the value area high. The point of control at 0.618 Fibonacci now stands as a critical support for a potential bullish reversal.
Summary
- GALA rejected from value area high and dropped into point of control support zone
- $0.618 Fibonacci confluence makes this a critical level for a bounce
- Volume will determine if a reversal or deeper correction toward $0.12 occurs
GALA (GALA) price action has shifted into a corrective phase following a clean rejection from the value area high, triggering a drop straight into the point of control (POC), a region with significant historical price interaction. This zone not only marks a high-volume node but also aligns with the 0.618 Fibonacci retracement and a key weak low, forming a major confluence of support. Whether GALA holds this level in the coming days will determine the next directional move.
Key technical points:
- Rejection from Value Area High: Led to a liquidation-based move into the point of control
- Key Support at Point of Control: Confluence of 0.618 Fibonacci and weak low signals strong demand zone
- Volume is Critical: Bullish volume inflows are needed at support to confirm bounce potential
The rejection at the value area high led to a sharp bearish engulfing candle, effectively liquidating many long positions and triggering a downside liquidity grab. With downside liquidity now taken, the risk of an upside liquidity move increases, especially considering the resistance above remains untapped. If price action reclaims the point of control after sweeping the weak low, it could open the door for a rotation back toward the high time frame resistance level that was previously untested.
From a technical standpoint, this support zone represents a liquidity pocket, and the market is now at a critical juncture. Holding the 0.618 Fibonacci and forming a bottoming structure would strengthen the case for a reversal toward resistance. Conversely, if GALA fails to hold this level, it opens the possibility of a deeper correction toward high-time frame support around $0.12, the next major downside target.
So far, the point of control is acting as support, but volume will be the ultimate deciding factor. Without a noticeable influx of bullish volume, price may remain weak and trend lower. However, a strong reclaim of the POC after a liquidity sweep would suggest accumulation and offer a high-probability setup for a rotation back to the range highs.
What to expect in the coming price action
GALA must hold the 0.618 Fibonacci zone and point of control to avoid deeper losses. A reclaim with strong volume could spark a move back to resistance; otherwise, further downside is likely.
