Top 3 Coins to Watch Today: GALA, LUNA, CAKE – December 16 Trading Analysis

By Malik Junaid December 16, 2021 In Crypto News, Market Analysis, Trading

Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.

1. Gala (GALA)

GALA aims to take the gaming industry in a different direction by giving players back control over their games. Gala Games’ mission is to make “blockchain games you’ll actually want to play”. The project wants to change the fact that players can spend hundreds of dollars on in-game assets, and countless hours playing the game, all of which could be taken away from them with the click of a button. It plans to reintroduce creative thinking into games by giving players control of the games and in-game assets with the help of blockchain technology.

GALA Price Analysis

At the time of writing, GALA is ranked the 40th cryptocurrency globally and the current price is US$0.4888. Let’s take a look at the chart below for price analysis:

Source: TradingView

After setting a low in late October, GALA kicked off a bullish trend that rallied nearly 585% by November to break the new all-time highs.

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The following 55% plummet found support near $0.4566, sweeping under the 40 EMA into the 61.8% retracement level before bouncing to resistance beginning at $0.4830.

This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $0.5012, where aggressive bulls might begin bidding. The level near $0.5340, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $0.5780. 

However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $0.4231 could provide at least a short-term bounce. If this level fails, the old highs near $0.3950 might also give support and see the start of a new bullish cycle after retesting these support levels.

2. Terra (LUNA)

Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin, and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.

LUNA Price Analysis

At the time of writing, LUNA is ranked the 12th cryptocurrency globally and the current price is US$56.16. Let’s take a look at the chart below for price analysis:

Source: TradingView

After breaking its all-time highs last week,  LUNA began a range that has been whiplashing both bulls and bears.

Resistance beginning near $75.23 held the price down for the monthly opening, although bulls have shown some strength near the 9 and 18 EMAs. 

A quick drop to $52.37, or into the zone beginning near $48.87, could give bulls the fuel to push through the nearby resistance. If this resistance breaks, the high near $60.47 provides a reasonable target. 

A break of this level could move further into uncharted territory with the nearest probable resistances projected around $65.28 and $70.57.

More patient bulls might be waiting far below the 40 EMA with bids close to the higher-timeframe range’s 61.8% retracement, near $45.59.

3. PancakeSwap (CAKE)

PancakeSwap CAKE is an automated market maker (AMM) – a decentralised finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees in return. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are filled by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return. PancakeSwap allows users to trade BEP20 tokens, provide liquidity to the exchange and earn fees, stake LP tokens to earn CAKE, stake CAKE to earn more CAKE, and stake CAKE to earn tokens of other projects.

CAKE Price Analysis

At the time of writing, CAKE is ranked the 48th cryptocurrency globally and the current price is US$12.22. Let’s take a look at the chart below for price analysis:

Source: TradingView

CAKE‘s 70% decline after August created relatively equal lows near $10.56 before bouncing over the local range’s midpoint near $13.60. A bullish altcoin market could help CAKE bulls regain a stronger bullish trend.

Aggressive bulls could look for entries in the daily gap starting near $11.27. The monthly open aligns with more probable support near $10.74. 

A stop run below the monthly open near $9.62 might provide a more favourable entry. A more substantial bearish move – perhaps from a sharp drop in Bitcoin’s price – could challenge support near $8.90, just above the equal lows.

Resistance rests just above, with the zone from $14.59 to $18.26 likely to provide a short-term ceiling. A break through this level might target resistance just under the cluster of relatively equal highs near $21.47. 

Beyond these highs, resistance near $23.15 provides a final challenge before attacking an old daily swing high near $25.86.

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Where to Buy or Trade Altcoins?

These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia. You can also buy these coins from different exchanges listed on Coinmarketcap.

Malik Junaid
Author

Malik Junaid

Malik is a skilled writer with a background in Software Engineering. His interests are blockchain, cryptocurrency trading and market analysis.

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