Date: Thu, February 13, 2025 | 10:26 AM GMT
In the cryptocurrency market, major altcoins have faced a heavy correction after the November rally, but the 0.70% decline in Bitcoin dominance over the last seven days, bringing it down to 60.90%, is signaling early signs of an altcoin recovery.
Amid this shift, top gaming tokens Gala (GALA) and Axie Infinity (AXS) are turning green in weekly performance after suffering deep corrections of 52% and 41% in the past 60 days.
Source: Coinmarketcap
Both tokens are now approaching key resistance levels within their falling wedge patterns, and potential breakouts could trigger a strong upside move.
Gala (GALA)
Gala (GALA) is currently trading at $0.023, sitting at the upper resistance of its falling wedge. The token recently found strong support at $0.017, aligning with the wedge’s lower boundary, which has held firm through the recent downturn.
Gala (GALA) Daily Chart/Coinsprobe (Source: Tradingview)
If GALA manages to break out and confirm support after a retest, the next major hurdle is the 200-day simple moving average (SMA). A clean move above this level could push the price toward $0.034, marking a 44% potential gain from its current price.
Momentum indicators are starting to shift in favor of the bulls, with the MACD showing early signs of a bullish crossover, suggesting that buying pressure is increasing.
Axie Infinity (AXS)
Axie Infinity (AXS) is also following a similar pattern, currently trading at $4.38 while pressing against the upper boundary of its falling wedge. The token recently bounced from $3.28, a crucial support level that has provided strong stability in recent weeks.
Axie Infinity (AXS) Daily Chart/Coinsprobe (Source: Tradingview)
If AXS successfully breaks out and confirms a support retest, the next key level to watch is the 25-day SMA. A move above this level could send AXS toward $5.67, representing a 30% potential gain from its current price.
The MACD indicator is beginning to shift positive, hinting at a possible change in momentum. If trading volume picks up, AXS could soon experience a breakout.
What’s Next?
With GALA and AXS nearing crucial breakout levels, traders should closely watch their price action. The broader market trend, Bitcoin dominance, and Ethereum’s movement will all play a significant role in determining whether gaming tokens can sustain a recovery.
If the altcoin market continues its rebound, GALA and AXS could extend their gains. However, if resistance holds strong, a retest of lower support levels may be needed before another breakout attempt.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
