The GALA price has made a spectacular rebound after its sharp decline during the weekend. The coin is trading at $0.2115, which is about 35% above the lowest level on Saturday. Still, it remains about 75% below the highest level in December. Its market capitalization has fallen to about $1.4 billion.
Gala is a blockchain project in the gaming category. The platform was started by the co-founder of Zynga, the company that was recently acquired by Take-Two Interactive. Gala enables people to play online games and win rewards using the GALA token. The token is both an ERC and BEP20.
The biggest transition this year will be the launch of the Gala Chain. This will be a decentralized platform that will be faster than the existing platforms. Most importantly, the chain will make it significantly cheaper for the users.
Like all cryptocurrencies, Gala has struggled in the past few months as investors worry about the Federal Reserve. The Fed is expected to start hiking interest rates this year. There are also concerns about whether blockchain games are just a fad. Besides, activity in some existing gaming platforms like Axie Infinity has started to decline. Also, investors are worried about global regulations on the industry.
GALA price prediction
The four-hour chart shows that the GALA price has been in a strong bearish trend in the past few months. Along the way, the coin formed a descending channel that is shown in green. Recently, the coin has moved below the lower side of this channel. It has also moved below the 25-day and 50-day moving averages.
The GALA price is now attempting to test the lower side of the descending channel. This price action could be a break and retest pattern. Therefore, there is a likelihood that the coin will likely resume the bearish trend, with the next reference level being at last week’s low at $0.15. This view will be invalidated if it moves above $0.25.
