GALA price has been in trouble in the past few days amid rising concerns about the coin. It slipped to a low of $0.03140 on November 4, which was about 35% below the highest point last month. It was trading at $0.036 on Monday morning as cryptocurrencies remained on edge.
GALA crypto price has been in a bearish trend in the past few days as the recent momentum of the Spider Tanks launch loses momentum. Spider Tanks, one of its key games in its ecosystem, was launched last week. Expectations are that the number of gamers has reduced slightly following the initial days jump.
Gala also declined after worries of a major hack in the network. This happened as Gala holders remained concerned about the risk of a multi-billion dollar rug pull in the ecosystem. In a statement, the developers reiterated that the system was not hacked and insisted that everything was fine.
The issue can be traced to when Gala Network started a partnership with pNetwork. At the time, the latter said that they would create a bridge for GALA to the BNB Chain. In essence, pNetwork locks up GALA on Ethereum and then re-mints pGALA on Binance’s chain.
Thomas Bertani of pNetwork reached out to Gala last week and informed it that the contract on the BNB Chain had been breached but not yet exploited. As such, it was a loaded time bomb that could go off at any time if hackers decided to breach the contract. You can read more about the hack here.
Meanwhile, GALA price also crashed after Huobi converted users’ GALA tokens to pGALA, a meme token. At the time, the coin’s price on Huobi crashed to $0.
GALA also slipped as the momentum of the recent Spider Tanks launch faded. This process is known as buying the rumour and selling the news.
The four-hour chart shows that the GALA price has come under intense pressure in the past few days. It has moved slightly below the 50-day exponential moving average. At the same time, the Relative Strength Index (RSI) has moved slightly below the neutral point. It has also formed a slanted double-top pattern.
Therefore, Gala will likely continue falling as sellers target last week’s low at $0.03124. This price is about 14% below the current level. A move above the resistance at $0.038 will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 04:04