Will meta trend help GALA recover?

The crypto market has seen a major crash in the past few days that began on December 3rd. Total crypto market cap is down more than 14% while most large cap coins are down 20% -30% each.

Meta-coins are no exception, even when trying to withstand a broader downtrend. However, by the time we went to press, most have begun to regain a lost portion. For example, MANA, SAND and ENJ saw daily increases of 3% to 9%.

Challenge the trend

However, GALA, one of the newest projects on this list, works in a slightly different style. Despite falling to $ 0.36, GALA still manages to close the December 4th daily candle in the green. This essentially means that late Saturday the token managed to recover and partially cover the loss during the session.

GALA price table | Source: Tradingview

Conversely, at the time of writing, GALA price will be in the red when it enters the trade at $ 0.45.

The status of some indicators clarifies the reason for the unusual behavior of GALA.

With a trading volume of over $ 2.12 billion, GALA’s stock market inflows are the second highest at press time.

A sudden spike in volume usually implies a strong presence from sellers. This time, however, GALA doesn’t seem to show it.

Source: Santiment

GALA’s age-related indicators have generally confirmed the cumulative trend.

Let’s look at the deposit transactions first. This indicator has not seen any increase recently. Indeed, the deposit trading curve has been moving downward in the past few hours. Oddly enough, a similar trend was observed in the age index of consumption.

While the deposit trading indicator focuses on the daily amount of GALA that comes and goes, the consumer age tracks the movement of the previously inactive GALA. An increase in deposit transactions usually indicates an increase in short-term pressure on the sell side, while the age of consumption signals a token movement between addresses.

In view of the lows of the above-mentioned indicators, it can therefore be assumed that market participants have not yet reached the typical sales regime.

Source: Santiment

In addition, the average coin age curve has also seen a steep increase in the last few days. Whenever coins age or age, it usually means that the holders remain stable. Over time, such coins become dormant and support a long-term price maintenance.

Here, too, there is currently no pressure to sell.

Despite a decline in recent days, GALA’s market value to real value ratio (MVRV) is still positive. At the time of going to press, it’s a value of 1.245%. This essentially means that investors are currently making more money than is common in the GALA market.

These give the owners more incentive to stay for the long term.

Source: Santiment

Therefore, if there is no pressure to sell, it is very likely that GALA will return to the uptrend in the next few sessions. In addition, there is a tendency for the entire meta-ecosystem to be contagious. Most of the coins from this room recovered and hit new highs in November.

With meta-coins showing signs of recovery, it will be difficult for GALA to break free from the broader uptrend for the time being.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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