The cryptocurrency market experienced a massive meltdown yesterday. Global crypto market capitalization is down more than 14% while most large cap coins have lost 20% -30% of their respective value.
Meta-coins are no exception. Even if they band together against a broader downtrend. However, as of press time, most tokens from the above category have started negating their losses. For example, MANA, SAND and ENJ saw daily increases of 3% to 9%.
Regardless of the trend
However, GALA, one of the newest companies on this list, acted in a slightly different style. Despite falling to $ 0.36, the daily candle was still green on its chart yesterday. This essentially means that Saturday’s alt-close managed to crawl again and offset the low opening metric.
At the time of writing, however, GALA is in the red.
The status of some indicators is maintained to clarify the reason for the unusual behavior of alt. To start with, the Santiment trend screener has found an interesting data point.
At over $ 2.12 billion in volume, GALA’s exceptional foreign exchange inflows are the second highest inflows at press time.
On any normal day, an increase in this metric usually implies the presence of a sales bias among market participants. This time around, however, GALA’s market doesn’t seem to benefit much from it.
Source: Santiment
GALA’s age-related indicators have generally confirmed the HODLing / accumulation trend.
Let’s look at the deposit transactions first. This indicator did not see a spike in its chart at the end of the year. In fact, the deposit trading curve has only dropped a few inches in the past few hours. Oddly enough, a similar trend was observed in the age index of consumption.
While the former focuses on the daily amount of GALA deposits that are coming in and going out, the latter tracks the movement of previously unused GALA tokens. An increase in deposit transactions usually indicates an increase in short-term pressure on the sell side, while this indicates the movement of tokens between addresses, as seen in the graph.
Given the relatively low levels of the above indicators, it can therefore be assumed that market participants have not yet entered the typical selling mode.
Source: Santiment
In addition, the average coin age curve has also seen a sharp increase in the last few days. Whenever coins age or age it usually means HODLers are holding onto their coins. Over time, such coins become dormant and support the long-term maintenance of the price of the underlying asset.
Here, too, there is currently no pressure to sell.
Despite the decline in recent days, the coin’s MVRV ratio continues to hover in positive territory. At the time of going to press, it was reading 1245% in the north. This essentially means that investors are currently making more money than usual in the GALA market.
Similarly, it gives HODLers a reasonably more incentive to stay in the arena for extended periods of time.
Source: Santiment
So if there is no such sales distortion, it is very likely that GALA will return to the uptrend on the chart in the next trading sessions. There is also a tendency for the entire ecosystem to be contagious. Most of the coins in this area recovered and hit new highs one after the other in November.
Now that these coins are showing signs of recovery, it will be difficult for GALA to break away from the broader meta uptrend in the long run.