Gala price has been in a strong bearish trend in the past few months as part of the ongoing cryptocurrency sell-off. The coin's decline accelerated in the overnight session as the Russia and Ukraine crisis continued. It is trading at $0.2170, which is the lowest it has been since February 5th this month.
Gala chain rollout
Gala is an exciting platform that enables people to build their games and monetize them in a number of ways. It also enables people to play existing games and trade non-fungible tokens (NFT).
The biggest catalyst in the ecosystem will be the upcoming launch of Gala Chain. This will be an in-house blockchain network that will make the ecosystem more user-friendly. It will have faster transactions, lower network fees and minting costs, and more interoperability.
In a statement last week, the developers said that the Gala Chain will be known as Project GYRI. In human anatomy, the gyri is the outermost part of the brain, meaning that it protects, organizes, and empowers.
The main reason why the GALA price declined sharply is that investors are afraid of the ongoing geopolitical tensions. On Monday, Putin formally recognized two separatist locations in Ukraine, meaning that they will likely invade in the coming days.
Therefore, analysts are afraid of the impact of this invasion to the broader economy and key assets like cryptocurrencies, NFTs, and stocks. Ideally, investors believe that these actions will devalue the assets. This explains why the Bitcoin fear and greed index has tumbled to about 20.
Another reason that explains the performance of Gala is that there are signs that activity in the network is slowing down this year as more people go back to work and school. The same trend has happened in other metaverse projects like Sandbox and Decentraland.
Gala price prediction
The four-hour chart shows that the Gala price has been in a strong bearish trend in the past few weeks. The sell-off started when the coin rose to the key resistance level at $0.3950 early this month.
It has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the oversold level.
Therefore, the coin will keep falling as bears target the next key support level at $0.200. A drop below this psychological level will open the possibility of the coin falling to the year-to-date low of $0.1540.