Gala Games Token (GALA) Price Outlook: Time to Buy Low?

19 Sep 2023 by Crypto Presale 2 min read

Like most cryptocurrencies, the year started on a good note for GALA, rising by over 200% from its 2022 low of $0.013 to hit $0.059. However, since February, GALA has been on a steady decline, losing all of its previous gains. The token has fallen by 76% since February 2023, 28% in the last 30 days, and 1.2% in the last 24 hours.

The ongoing decline in GALA's price can be attributed to a bitter legal battle between its co-founders, Wright Thurston and Eric Schiermeyer. Schiermeyer has accused Thurston and his investment company of stealing $130 million in GALA tokens, alleging that Thurston moved these tokens into various wallets and eventually sold or swapped them. Thurston, in turn, has sued Schiermeyer for allegedly forcing Gala Games to sell off valuable assets and borrow millions for personal use.

Similarly, the US Securities and Exchange Commission (SEC) filed a lawsuit against Thurston and two of his companies in March 2023 for their involvement in a purportedly fraudulent crypto mining scheme. These ongoing legal battles have shaken investors' confidence in GALA, and whales are exiting the project in droves.

Technical Analysis

Daily Timeframe

Source: TradingView

On the daily timeframe, GALA has broken below a major support level around the $0.0155 region and is currently trading at $0.0144. This is the lowest point the token has been at since it launched back in 2021. Also, GALA is trading below the 50-day EMA and 200-day EMA, which shows that the bearish momentum is very strong. In addition, the RSI is presently oversold, which also confirms that the sellers are dominant and the price can continue to trend downward in the short term.

4 Hour Timeframe

Source: TradingView

On the 4-hour timeframe, the 50-day EMA is acting as a dynamic trendline, and GALA is trading below it. Also, the buyers are trying to push the price above the 50% band of the RSI, but the sellers keep resisting. These technical indicators show that a trend reversal is nowhere in sight, and GALA might continue trading downwards. Looking at the Fibonnaci extension, it’s likely GALA will find support around the $0.011 zone. If more buyers step in at this level, we might see a trend reversal. However, that is not likely because of the negative sentiment surrounding the project.

Time to Buy Low?

Source: IntoTheBlock

Short answer: no! This is not the right time to buy GALA, as the bearish momentum is still very strong. Also, on-chain data from IntoTheBlock shows that whales are exiting the project. The netflow indicator shows that 63% of large GALA holders have exited their positions in the last 90 days. This, coupled with the technical indicators and negative sentiments from the ongoing legal battle between the co-founders and the US SEC against one of the co-founders, means now is not a good time to buy GALA.

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