Popular trader Cameroun Fous has posted a concerning chart for Gala, the native token that powers Gala Games, a platform for blockchain gaming.
The trader envisages a scenario in which Gala declines to sub-$0.040 levels. In this case, GALA would have to drop further by more than 10% to reach this target.
At the time of writing, GALA was down 12.2% at $0.044, in line with current market declines. Gala created a double top near the $0.055 level on Jan. 17 and has steadily dropped since then.
If the drop continues, GALA might seek support next at the daily MA 200 at $0.040. In this scenario, the bulls may gather strength and pick up a rally to retest the $0.055 high once more.
According to Fous' chart, GALA is still in an ascending trend on the hourly chart, so bulls may take advantage of the dip to push GALA prices higher.
Gala is up 138% monthly
On the daily chart, GALA is forming a triangular pattern that might lead into a breakout, although the possibility of further declines cannot be ruled out.
As reported by U.Today, Gala was a top gainer in January so far as gaming and metaverse tokens outperformed the broader markets. The gaming token is up 14.8%, 146.7% and 138.7% in the last seven, fourteen, and thirty days, respectively, according to CoinGecko data.
On-chain analytics firm Santiment named "whales," or "large holders," as those who pushed up the GALA price. It observed that the number of GALA transactions exceeding $100,000 returned to a two-month high as prices rose.
Gala's fundamentals remain a factor to consider. The broader market moves might, however, be more significant in this regard.