GALA Price Enters bear market as correction From ATH accelerates

Summary:
• The GALA price has reversed over 35% from the recent all-time high of $0.8427 as the Metaverse rally runs out of steam.

The GALA price has reversed over 35% from the recent all-time high of $0.8427 as the Metaverse rally runs out of steam.

In November, Gala (GALA) was one of the best performing cryptocurrencies as investors flocked to Metaverse-related digital assets. Like Decentraland and The Sandbox, GALA saw a buying rush after Facebook rebranded to Meta. Within a month of the announcement, the GALA token had risen a dizzying 800% to a $5.7 billion valuation. But since then, Gala’s price action has been primarily bearish, suggesting buyers are unloading tokens to lock in profits. As a result, the price has sliced through several support levels, which may encourage more selling.

Price Analysis

The 4-hour price chart shows GALA has broken down from its uptrend and is now below the support of the November 28th low at $0.5700. Subsequently, the price is on track to test the 100-Day Moving Average (DMA) at $0.4877.

Notably, the 100 DMA lines up almost perfectly with the November 21st high of $0.4890 and the 50% Fibonacci retracement level of $0.4685, meaning buyers are likely to emerge if the price drops below $0.5000. In contrast, if GALA breaks below the 100 DMA, the price could extend lower towards the 61.8% Fibo retracement level of $0.3791.

Until GALA reclaims the former trend support (now resistance ) at $0.6900, I expect it to trade with a bearish bias. Therefore successful clearance of the trend invalidates the bearish view.

Gala Price Chart (4-hour)

For more market insights, follow Elliott on Twitter.