The price of GALA seems to be pulling back from its all-time high as investors takes profit across most cryptocurrency markets.
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Blockchain-based play-to-earn platform Gala Games (GALA) has been a star performer in November, and the rapid ascent of the GALA token has been incredible. Between the 17th and today, the price increased over 620% to a record $0.8420, inflating the projects market cap to almost $6 billion. And despite the ongoing retracement, Gala is still the 42nd largest cryptocurrency, ahead of Helium.
Investors have been embracing anything gaming and Metverse-related over the last three weeks. This is undoubtedly due to Facebook pivoting to Meta. As a result, traders have been rushing to gain exposure to any projects with exposure to the nascent industry. Subsequently, the price of many tokens like Decentraland and The Sandbox has gone parabolic, leaving them extremely vulnerable to violent reversals. However, until now, the GALA price has remained remarkably resilient. However, this morning, signs emerge that the token may be on the cusp of a violent reversal.
The 4-hour chart shows the Gala price is turning lower. Presently, the token has pulled back to the 0.236 Fibonacci retracement level. However, in my opinion, a 50% pullback looks logical.
A 50% price retracement to $0.4620 aligns perfectly with rising trend support and the November 21st high. On that basis, my immediate view is bearish, with a $0.4620 price target. However, a push beyond $0.7500 suggests the bull market is intact, invalidating the bearish view.