GALA price has collapsed. The coin is trading at $0.2825, which is the lowest it has been since November last year. It has dropped by over 67% from its all-time high. As a result, its total market cap has dropped to over $2.1 billion, making it the 64th biggest cryptocurrency in the world.
Gala is a blockchain network that is disrupting the gaming industry. The company was developed by a co-founder of Zynga, a company that was recently acquired for $11 billion. Its goal is to create a platform where people can create and play decentralized games in an easy way.
Today, Gala is home to a number of games and the developers expect that more games will be added to the network. Today, some of the games in its ecosystem are Townstar, Spider Tanks, and Fortified.
Gala is not the only play-to-earn coins that has crashed this year. Indeed, the Axie Infinity price has dropped by almost 60% from its all-time high. Similarly, The Sandbox price has crashed by over 50% while the Decentraland price has dropped by 54%.
The sell-off of Gala is likely because of worries about the play-to-earn games industry and whether it will continue growing. Also, the sell-off is mostly because of profit-taking considering that its price jumped parabolically in 2021.
The drop is also likely because of the fear of the Federal Reserve and the fact that it has pledged to be more aggressively this year.
The four-hour chart shows that the Gala price has been in a strong bearish trend in the past few months. The bearish trend is being supported by the 25-day and 50-day moving averages. It has also moved below the lower side of the descending triangle pattern. Also, the two lines of the MACD have moved below the neutral level.
Therefore, while the overall trend is bearish, I suspect that GALA has become relatively cheap. This means that it will likely bounce back sometime in the first quarter.
In the immediate near term, however, the bearish trend will continue as bears target the key support at $0.25. The bearish view will be invalidated if the price rises above $0.35.
This post was last modified on %s = human-readable time difference 06:32