beincrypto.com
Gala (GALA) accumulation from whales could position the price for a more significant recovery.
This anticipated ascent is primarily attributed to the heightened bullish sentiment among investors, which is expected to propel the price upwards again.
Gala Investors Back Potential Price Rise
Gala price fell victim to the broader market cues after the altcoin corrected by nearly 28% in the span of 48 hours. However, this did not discourage GALA holders; instead, it acted as a bullish trigger for a certain cohort – whales.
These large wallet holders moved to accumulate more GALA in the moments of the decline instead of selling. The addresses holding between $1 million and $10 million worth of GALA added $160 million in GALA to bring their total holdings to $504 million.
Gala whales appear to have preempted the potential recovery, as they are also signaling a similar accumulation on the Market Value to Realized Value (MVRV) ratio.
Read More: Where To Buy Gala (GALA): 6 Best Platforms in 2024
The MVRV ratio measures investor profit/loss. Gala’s 30-day MVRV at -21% signals losses, potentially prompting accumulation. Historically, GALA between -14% to -24% MVRV often precedes rallies, terming it an opportunity zone for accumulation.
Thus, if the Gala price is low, it incites the sentiment of accumulation among investors, which could translate to a further uptick in the asset’s value.
GALA Price Prediction: Recovery, Not Rally
Gala price at $0.044 has bounced off the $0.039 support floor, and based on the aforementioned conditions, it is poised for a further increase. The altcoin will likely continue its rise to reclaim the support of and resistance of the falling wedge it was in before the breakdown.
Testing $0.065 as resistance would mark a likely 43% recovery for the asset, but this does not suggest an immediate rally as that would require neutral to bullish market cues.
Read More: How to Buy Gala (GALA) and Everything You Need to Know
However, if the optimistic steam runs out before the Gala price can breach $0.050, GALA will witness a drawdown. Furthermore, losing $0.039 as a support floor would invalidate the bullish thesis.