Gala Token Growth 350%; Should we wait for the price to improve?
The price of the GALA token has risen by about 350 percent since the beginning of November, and this uptrend has not stopped to date with market correction. However, a downward pattern can be seen in the 4-hour market view of this digital currency, which can push the price to lower levels.
to the Report The Kevin Telegraph, the exclusive digital currency of the Gala Games platform, known as “GALA”, grew by almost 350% in November, ignoring the correction of major market currencies, including Bitcoin. The price of the gala has risen from $ 0.088 to $ 0.42 from November 1 (November 10) to November 22 (December 1).
The jump of the gala was primarily due to the increase in the price of most of the assets related to the game and Metavars. For example, the price of MANA, the Decentraland native token, has risen more than 30 percent since last month. Centralland is a blockchain-based virtual world that allows users to create and monetize new content and applications.
Similarly, the price of the SAND digital currency, the native token of the Sandbox decentralized project, doubled in November. Other active game projects, including Dvision Network and Ultra, have seen growth of more than 100 percent.
Continuation of the upward trend or correction?
After Facebook decided to change its name to Meta, and its CEO, Mark Zuckerberg, announced that Facebook would no longer be a social media platform and would be active in Metawares, the price of digital currencies associated with Metavars and games Computers also increased.
Gala Games, which specializes in the development of blockchain-based games in China, reached $ 0.489 on November 22 following the thrill of the Metawares area. However, this digital currency has shown weaknesses in its movement and in the 4-hour market view, its pattern can be seen.
One of the most well-known and reliable technical patterns is the head pattern, which is formed when the price forms three consecutive peaks and the middle peak (head) is higher than the other two peaks (shoulders). The three peaks have the same level of support called the “neckline”.
If we look at the chart of this digital currency in a shorter period of time, the left shoulder is formed near the price range of $ 0.39 and has been corrected to the support of the neckline. The price continued to rise again to $ 0.48 and is now forming a right shoulder from the price level of $ 0.43.
Also read: Familiarity with 10 technical analysis chart patterns that every trader should know
If the price candle closes with a convincing volume below the neckline, the failure of this support will be confirmed. In this case, the price of the gala will probably be as low as the distance between the head (middle peak) and the neckline. That could eventually push the gala to $ 0.24, or about 34 percent below the potential breakout point.
Descending divergence and ascending flag pattern
In addition to the Soroushneh pattern, the gala shows a clear divergence between rising prices and declining acceleration. The price has risen and, as shown in the chart below, has been lower than the Relative Strength Index (RSI). This index measures the amount of price changes to assess the saturation of buying or selling conditions in the market.
Gala’s uptrend has been accompanied by a decrease in trading volume, and this shows that the uptrend is not a strong acceleration.
As a result, the downward divergence between the price increase and the decrease in trading volume has been confirmed and, as mentioned, has strengthened the likelihood of the Soroshaneh pattern forming. On the other hand, as shown in the chart below, since the price also confirms the formation of an uptrend pattern, the downtrend may continue to lose its credibility.
If the price goes above the triangle pattern, the target of the bullish flag pattern is near $ 0.69.