Galaxy Digital Surges 6.3% on Bullish Momentum: What's Fueling the Rally?

Summary
• Galaxy Digital (GLXY) rockets 6.3% to $26.31, piercing its 52-week low of $17.40
• Leverage Shares 2X Long GLXY ETF (GLGG) surges 13.35%, outpacing the stock’s rally
• MACD histogram flips positive, RSI rebounds from oversold territory at 31.87
• Sector leader Coinbase (COIN) surges 7.16%, amplifying blockchain sector optimism
Galaxy Digital’s intraday breakout has ignited a frenzy in leveraged ETFs and options, with technical indicators flashing green for a potential reversal. The stock’s 6.3% surge—its largest single-day gain since late 2024—has traders scrambling to decode whether this is a short-covering rally or the start of a new uptrend. With the 52-week low now in sight and volatility metrics spiking, the market is betting on a catalyst yet to be revealed.

Technical Bullishness and Sector Synergy Drive GLXY Higher
The surge in Galaxy Digital stems from a confluence of technical triggers and sector-wide momentum. The stock’s price has pierced above its 30-day moving average of $25.22, while the MACD histogram turned positive for the first time in weeks. Simultaneously, the blockchain sector’s 7.16% rally in Coinbase Global (COIN) has created a tailwind for GLXY, which trades at a 32.1x dynamic P/E—well below COIN’s 45.9x multiple. Options data reveals aggressive short-covering in put options below $25, with the $22.5 strike seeing 3,075 contracts traded. This suggests institutional buyers are locking in downside protection as the stock approaches its 52-week low.

Blockchain Sector Gains Steam as Coinbase Leads Charge
The blockchain sector is experiencing a synchronized rally, with Coinbase Global (COIN) outpacing Galaxy Digital’s 6.3% gain by 0.86 percentage points. This divergence highlights COIN’s role as the sector’s bellwether, but GLXY’s lower valuation multiple and tighter Bollinger Bands (currently at $20.43–$29.87) suggest it could attract speculative capital seeking higher leverage. The sector’s 7.16% intraday gain in COIN has created a flywheel effect, with GLXY’s 2X leveraged ETF (GLGG) surging 13.35%—a clear signal of risk-on sentiment in the space.

Leverage the Rally: ETFs and Options for a Volatile GLXY
• RSI: 31.87 (oversold rebound)
• MACD: -1.31 (bullish crossover)
• Bollinger Bands: $20.43 (lower) to $29.87 (upper)
• 30D MA: $25.22 (below current price)
• Turnover Rate: 0.63% (healthy liquidity)

Galaxy Digital’s technical setup screams short-term bullish momentum. The stock is trading near its 52-week low of $17.40, with the 200-day MA absent from the data, suggesting no major resistance from long-term averages. The 2X leveraged ETF GLGG (up 13.35%) offers amplified exposure, but options traders should focus on the GLXY20260109C26.5 call and GLXY20260109P25 put for directional plays. The call option’s 75.49% implied volatility and 171.43% price change ratio indicate strong demand for upside potential, while the put’s 82.55% IV and 58.58% leverage ratio offer downside protection. For a 5% upside scenario (targeting $27.62), the call’s payoff would be $1.12 per contract, versus $0.12 for the put. Aggressive bulls should consider GLXY20260109C26.5 into a break above $26.50, while cautious traders may short GLXY20260109P22.5 if the $25.25 support holds.

Backtest Galaxy Digital Stock Performance
The backtest of GLXY's performance following a 6% intraday surge from 2022 to the present indicates favorable short-to-medium-term gains, with the 3-Day, 10-Day, and 30-Day win rates all exceeding 50%. The maximum return observed was 15.27% over 30 days, suggesting that while there is volatility, GLXY can capitalize on intraday movements to generate positive returns.

Position for Volatility as GLXY Tests Key Levels
Galaxy Digital’s 6.3% rally has created a high-probability setup for a continuation move, but traders must watch the $26.50 intraday high as a critical pivot. A close above this level would validate the breakout and trigger a retest of the $29.87 Bollinger Band. Conversely, a failure to hold $25.25 could reignite bearish momentum. With Coinbase (COIN) surging 7.16%, the sector’s strength suggests GLXY’s rally is not isolated. Investors should prioritize the GLXY20260109C26.5 call for a leveraged bet on the $29.87 target or use the GLXY20260109P25 put for a 58.58% leverage hedge. Watch for $26.50 breakout or $25.25 breakdown—either could define the next phase.