Following the broader market’s sharp fall, GALA underwent a selloff, dropping over 30% this week. For the past two months, it was hovering in a closed range.
Last month, it escaped the range and breached the lower neckline of the $0.04000 mark. Afterward, the sellers continued to stretch the fall reflecting dominance.
The ongoing trend favors the bears, the buyers were being cautious due to the corrective phase the crypto is in. Additionally, GALA was under the significant moving averages and displayed a sharp fall over the last three sessions.
The overall market sentiment is beyond terrible, with over $900 Million in long liquidations.
At press time, the Gala token traded at $0.0205 with an intraday decline of 13.36%, reflecting bearishness on the charts. It has a monthly return ratio of -56.30% and -32.20% yearly, reflecting a short-term downtrend.
The pair of GALA/BTC is at 0.000000385 BTC, and the market cap is $160.63 Million. Analysts are bearish and suggest that GALA may extend the drop toward the $0.0100 mark.
GALA Looks Bearish: Analyzing Price Action
On Wednesday, Gala Games announced a new partnership with the Hong Kong based Game Software company. The collaboration is expected to improve the client’s experience of the tokens.
Amidst the positive media news, the token fell over 10%, and tides in the bearish wave. Per the price action, it can be anticipated that in the upcoming sessions, the token could dive toward the $0.0160 mark.
Trading in a bearish course, the token formed a falling wedge pattern and initiated a fall last week. After March 2024, the token underwent a strong correction and witnessed a drop of over 70% over the last four months.
The price action of GALA crypto shows a downward trend with intense selling pressure, as lower lows were formed over the last few months.
Price Volume Chart | Source: Santiment
GALA price crossed under $0.0300 and is on its yearly low mark near $0.0150. Below it, a free fall toward $0.01000 is expected.
Social Metrics Reveal Impressive Bounce
Amidst the price decline of over 13%, the users on the social media platforms stayed active and showed interest, leading to a spike in the social dominance data over 22% this week.
Social Dominance Data | Source: Santiment
Similarly, the X followers’ data witnessed a rise, bounced over 11%, and rose to 24.5k.
Fueled by the sharp selloff, a vertical fall on the charts conveyed that sellers have the upper hand and might continue pushing the token ahead.
A tweet by @Khoas mentioned the levels of the token that were suited to go long ahead.
$GALA spot buy/long opportunity incoming!
— Khaos (@Khaosmatic) July 4, 2024
Two key levels with lots of demand, several TF confirmations + fib confluence.
1st key level is about to get tapped soon and I expect a positive reaction here in the short term, but ultimately #BTC will decide if it holds, and for how… pic.twitter.com/sFAUGDQust
A Tweet by Khoas | Source: X
The key indicators reflected negative sentiments. RSI curve fell to the oversold region, while the MACD indicator plotted the red bars on the histogram.
The immediate support levels for the Gala token are $0.0190 and $0.0180, whereas the key upside hurdle is around $0.0230, followed by $0.0280.
The GALA token price fell below the noteworthy support level of $0.0300, and a range breakdown was observed on the chart. Meanwhile, it has reached its yearly low region and might extend the retracement.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
