Market Overview for Gala/Tether (GALAUSDT)

• GALAUSDT declined 0.65% in the last 24 hours, closing near key support.
• A bearish divergence in volume suggests potential further downside.
• RSI entered oversold territory, hinting at possible short-term bounce.
• Price remained within a tight Bollinger Band range, indicating low volatility.
• A 7-hour bearish reversal pattern formed near the 16:00 ET low.

Gala/Tether (GALAUSDT) opened at $0.01612 on 2025-10-03 at 12:00 ET, peaked at $0.01646, and closed at $0.01633 as of 2025-10-04 02:45 ET. Total traded volume was approximately 112,464,367 units with notional turnover reaching $1,834,923.31 in the 24-hour period.

Structure & Formations

Price action for GALAUSDT displayed a bearish trend, with a key support level forming around $0.01604–$0.01612, as confirmed by the rejection at that level on the 18:00–19:00 ET timeframe. A bearish engulfing pattern formed at 17:00 ET as the candle closed near the session low, signaling a potential continuation of downward momentum. A doji candle at 17:30 ET highlighted indecision following a sharp decline, while a long bearish tail at 16:00 ET indicated rejection near $0.01623–$0.01625. The price then consolidated between $0.01631 and $0.01646 before failing to break through higher resistance.

Moving Averages

On the 15-minute chart, price remained above the 20-period SMA but dipped below the 50-period SMA, indicating short-term bearish momentum. The 50-period SMA on the daily chart currently sits at $0.01629, and price remains below that level, suggesting bearish bias on a larger time frame. The 200-period SMA, at $0.01638, provides a critical psychological level to watch for a potential bearish breakdown or a bounce.

MACD & RSI

The MACD line crossed below the signal line during the 17:00–17:30 ET timeframe, forming a bearish crossover. Momentum appears to be waning, with the histogram showing a gradual contraction. RSI dropped to 32 by 02:15 ET, entering oversold territory, which may increase the likelihood of a near-term rebound. However, RSI has shown signs of bearish divergence—rising while price fell during the 00:00–00:45 ET window—which could imply that the downtrend remains intact.

Bollinger Bands

Price remained within the upper and lower Bollinger Bands for the majority of the 24-hour window, indicating low volatility and a consolidating pattern. A slight expansion in the bands occurred between 19:00 and 21:00 ET, coinciding with the breakout and pullback between $0.01616 and $0.01646. Price closed near the middle band at $0.01636, suggesting a potential retesting of the $0.01604–$0.01612 support zone in the near future.

Volume & Turnover

Volume spiked significantly during the 17:00–17:45 ET timeframe as price declined from $0.01644 to $0.01608, confirming bearish momentum. However, after the 23:00 ET low, volume declined even as price remained near the same level, indicating possible exhaustion in the bearish move. Turnover followed a similar trend, showing a peak of ~$146,600 at 17:15 ET and declining thereafter. The divergence between price and turnover after 23:00 ET could suggest short-term equilibrium or a possible reversal.

Fibonacci Retracements

Applying Fibonacci retracement levels to the 17:00–21:00 ET swing (high at $0.01646 to low at $0.01616), the 38.2% level (~$0.01633) coincides with the 21:45 ET close, where price found temporary support before continuing to consolidate. The 61.8% level (~$0.01626) marks a critical area for potential resistance on a rebound. Daily Fibonacci levels based on the broader move from $0.01638 to $0.01604 also suggest that the $0.01618–$0.01625 zone could become a key battleground for near-term direction.

Backtest Hypothesis

A potential backtesting strategy for this setup could focus on a short-term reversal trade triggered by RSI entering oversold territory and price finding support near the 61.8% Fibonacci level. A long entry could be considered with a stop just below the 50-period SMA on the 15-minute chart. A trailing stop might be implemented based on Bollinger Band contraction, capturing any bounce off the key support level. This strategy would benefit from a low-volatility backdrop and strong volume confirmation on any reversal candles, ensuring a balance of risk and reward for short-term traders.