After having one of the best starts of the year, where it gained more than 200 percent last month, the Gala crypto price is down by 3 percent on the first day of the month. The bearish trend comes amidst a price action across the cryptocurrency industry, which has also resulted in the market capitalization of the entire industry drop by a percentage point today.
In January, the global cryptocurrency market capitalization rose by 32 percent, with projects such as Bitcoin surging by almost 40 percent. However, for Gala crypto, the surge was almost 6 times the industry’s average price surge.
Part of the reason for the Gala Crypto price surge was predictably due to the industry-wide bullish trend. Gala Crypto, being an altcoin, saw its prices adopt the general bullish trend of the crypto industry. This was due to its significant correlation with the industry, whereby altcoins, in most cases, seem to follow the trend of Bitcoin.
Another reason is the growth in the traction of the project. Since the start of the year, we have seen a growth in daily trading volume, which has risen from averaging below $50 million per day to the current volume that sometimes surges to above $200 million, based on data from CoinMarketCap.
The crypto gaming niche projects that integrate NFTs have also rallied throughout the year. This has had a positive impact in Gala Crypto, which has also traded in a bullish trend, as more investors become optimistic about the gaming industry. The return of investors in the gaming industry has also contributed to the current price surge.
As seen from the above analysis, the Gala crypto price surge has been due to multiple reasons, including its correlation with the industry and the project’s growing popularity with its users and investors. The impact of these factors has resulted in Gala forming a price action that has resulted in a 200 percent price surge year-to-date, as shown in the daily chart below.
Therefore, despite today’s trading session showing a drop of 3 percent in the markets, I expect to see Gala’s crypto price resuming the aggressive bullish trend. There is a high likelihood that we might see it trading above the $0.1 price level in the coming sessions.
This post was last modified on Feb 01, 2023, 10:52 GMT 10:52