Gala/Tether Market Overview – 2025-10-07

• Gala/Tether (GALAUSDT) declined 6.6% over the last 24 hours, with bearish momentum intensifying in the final 6 hours.
• RSI dropped below 30 while volume spiked at the session low, suggesting oversold conditions and potential near-term support.
• A key 0.0160–0.0161 support cluster held briefly before a sharp break, raising bearish continuation risk ahead.
• Bollinger Bands widened after 20:00 ET as volatility surged, with price closing near the lower band.
• A 15-minute bullish engulfing pattern formed near 0.01625–0.01630 but failed to hold, hinting at weak buyers.

Gala/Tether (GALAUSDT) opened the 24-hour period at 0.01653 on 2025-10-06 12:00 ET, reached a high of 0.01666, touched a low of 0.01541, and closed at 0.01628 at 12:00 ET on 2025-10-07. Total traded volume was 396,022,983.0, while notional turnover came in at approximately $6,565,911. The pair saw a sharp bearish reversal in the latter half of the session, with volume accelerating as price tested key support levels.

Structure & Formations

Price action over the last 24 hours displayed a strong bearish bias, marked by a descending triangle formation and multiple bearish engulfing patterns on the 15-minute chart. A key support cluster developed between 0.0160 and 0.0161, where price briefly found refuge but failed to retest. The 0.0162–0.0163 area remains a critical psychological level, as it represents the 38.2% Fibonacci retracement of the prior swing high. A break below 0.0160 could trigger further declines toward 0.0157–0.0158, the 61.8% retracement level.

Moving Averages

On the 15-minute chart, the 20-period MA (SMA) crossed below the 50-period MA in a bearish “death cross,” reinforcing short-term bearish sentiment. On the daily chart, the 50-period MA stands at 0.01645, while the 200-period MA remains at 0.01675, indicating a longer-term bearish trend. Price is currently below all key MAs, suggesting a continuation of the downtrend unless a strong reversal occurs.

MACD & RSI

The MACD turned negative early in the session and remained bearish, with the histogram expanding as the selloff intensified. RSI dropped below 30 in the final 6 hours, signaling oversold territory, though this condition alone is insufficient for a reversal without a strong bullish candle close. A rebound above 40 could provide temporary relief but may not reverse the trend unless accompanied by rising volume.

Bollinger Bands

Bollinger Bands expanded significantly after 20:00 ET as volatility spiked. Price closed near the lower band, suggesting a possible oversold bounce, though the bearish bias remains intact. A retest of the upper band at 0.0163–0.0164 could provide a short-term entry point for traders expecting a retracement, but a failure to hold this level could confirm a deeper breakdown.

Volume & Turnover

Volume surged toward the session low, with a final hour of trading showing a volume spike of 105 million, the highest in the dataset. Notional turnover reached a peak of $180,000 at 15:15 ET, coinciding with the breakdown of key support. The divergence between price and volume, however, is weak—volume remained elevated during the selloff but did not surge on any rally. This suggests that sellers were in control, and buyers lacked conviction.

Fibonacci Retracements

Fibonacci levels highlighted key zones of interest for both buyers and sellers. The 38.2% retracement at 0.01625–0.01630 held briefly in the late hours but failed to attract strong buyers. The 61.8% retracement at 0.0157–0.0158 is now a critical area to watch, as it has previously acted as both support and resistance. A close below 0.0160 would likely trigger further Fibonacci levels at 0.0155 and 0.0152.

Backtest Hypothesis

A potential backtesting strategy for GALAUSDT could focus on identifying key Fibonacci retracement levels as dynamic support/resistance zones and using RSI divergence as a trigger for entry. For example, a long entry could be considered at 0.0160–0.0161 if RSI shows bullish divergence and price breaks above the 20-period MA, with a stop loss below 0.01575 and a target at 0.01645. Short positions could be initiated during sharp breakouts below 0.0160, especially if volume confirms the breakdown and MACD remains bearish. This approach would need to be stress-tested over historical data to assess its effectiveness in both trending and range-bound conditions.