Amid Pessimism Due To A Hack, Would GALA Price Breakout Or Fall?

GALA was targeted by a hacker using a wallet address that ended with -00F97. As a result, an extra 5 billion GALA coins, valued at around $236 Million, were created. 

Moreover, the hacker exchanged GALA for ETH on the blockchain, and has exchanged 5,913 ETH up to this point. It appears that the GALA has blocked the hacker’s address from accessing. The hacker maintains possession of 4.4 billion GALA valued at $186 Million.

Discovering the breach

The CEO of Gala Games, Eric Schiermeyer, using a handle known as Benefactor on X platform, tweeted in a post that the company has successfully discovered a breach. This breach was caused by an unauthorized token sale, but acted quickly to secure and remove unauthorized access to the GALA contract within 45 minutes.

The tweet emphasized that the ETH contract for GALA wallet remained secure because of the multi-sig wallet protection.

Moreover, Schiermeyer also mentioned that their internal controls were messed up, and they are committed to prevent a similar incident from happening again in the future. Mainly, the company has also reached out to the FBI, the U.S. Department of Justice, and a group of international authorities, as they have identified the culprit.

What Action Gala Games has taken in Account of this Hack?

In addition, Gala Games‘ official tweet mentioned that the security incident that involved GALA tokens had been controlled and the affected wallet has been frozen.

The tweet also stated that this incident was an isolated incident that occured, the reason has been resolved, and they are collaborating with law authorities to identify and investigate those who were responsible for the breach.

Gala claimed that they are solely devoted to uphold its top-level security and transparency standards.

Analyzing the Daily Chart

In the wake of the hack, GALA price deteriorated, which happens to be an typical reaction of the market to the security breach. GALA’s price sank as low as $0.038 in the aftermath, but it has since recovered and stabilized at $0.04159.

Furthermore, the price has defended its support level on multiple occasions, but failed to move higher on the daily chart. The GALA price has been consistently moving below the declining trendline. This price shows an intraday decline of -4.29%, and a 24-hour trading volume of $775.43 Million.

Therefore, if the users take the hack incident seriously, and bulls lose it ground, then the price could break the support level of $0.038 massively and could reach lower levels.

On the contrary situation, if the user’s trust increases and the bulls start to enter, then it could give a breakout for the upside, and then the price could achieve targets like $0.070, and $0.0850.

The indicators, are not clearly showing anything as MACD, and RSI are consolidating, and price has been taking rejection from dynamic 50-day EMA, and support from dynamic support of 200-day EMA.

Summary

A hacker targeted GALA and created 5 billion coins valued at $236 Million. The hacker exchanged some GALA for ETH but was blocked from accessing the coins. 

Similarly, Gala Games CEO confirmed the breach and took quick action to secure the GALA contract. The company is working with law enforcement to identify the hacker. 

likewise, GALA’s price initially dropped but has since stabilized. The price may break support if users lose trust, but could rise if trust increases. Indicators like MACD and RSI are consolidating, and the price is testing support levels.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.