The metaverse wipe-out we saw during the last week has pushed a lot of coins way lower from yearly highs in 2022. Gala Games (GALA) has not been spared, and the coin has been on a massive downturn since the end of February. But are there signs of a recovery? Here is what we know:
GALA could rise above its 20-day EMA in the days ahead.
The EMA will create important support for price consolidation in the near term.
The meta coin was trading at $0.22 at press time.
Data Source: Tradingview
Why does the 20-day EMA matter for GALA?
Trend reversals are very crucial in technical analysis. In most cases, when coins have dropped consistently over a long period of time, bulls are often watching for the right trend reversal to buy. For GALA, rising above its 20-day EMA of $0.28 could signal a trend reversal is coming.
This will in turn trigger a buying frenzy that will push the meta coin well above $0.36. This will be almost 80% above the current price which is presently at $0.22. The most important indicator to watch in this setup is the $0.21 support.
The bulls will need to defend this zone and create enough momentum for the next leg up. If GALA falls below that threshold, it will be very hard to see any recovery. In fact, the coin could easily bottom to $0.17 before it rises again.
Why is Gala Games (GALA) trending lower?
Much of these losses were occasioned by news that Meta Platforms, one of the key tech drivers in the metaverse, missed earnings expectations. But the high market volatility due to economic and geopolitical pressures has played a big role.
This volatility is sadly here to stay for the foreseeable future. But even with that, overall, the longer-term outlook for GALA remains largely in positive territory.