GALA Token Shows Strong Potential for Growth
Gala’s price has been moving within a horizontal channel since April 12, indicating a balance between buyers and sellers in the market. However, the token’s Market Value to Realised Value (MVRV) ratio is flashing a buy signal, suggesting that the price may break above the upper line of the channel to continue its current upward trend.
The horizontal channel formation suggests that Gala has been experiencing consolidation within a specific price range, with resistance at $0.053 and support at $0.038. Currently trading at $0.046, Gala is approaching the upper line of the channel and may surpass this resistance level if market participants respond to the buy signals indicated by its MVRV ratio.
At present, Gala’s MVRV ratio, based on the 30-day and 365-day moving averages, is -21.69% and -71.57% respectively. This ratio compares the token’s current market price to the average price at which investors acquired their holdings. A negative MVRV ratio suggests that Gala is undervalued, presenting a good buying opportunity as the asset is trading below its historical cost basis.
Despite Gala’s consolidation within a tight range, the futures market participants are maintaining a bullish outlook, evident from the token’s positive funding rate. Funding rates play a role in perpetual futures contracts to align the contract price with the spot price. A positive funding rate signifies a strong demand for long positions, with Gala’s rate currently at $0.011%.
Further supporting the bullish sentiment, Gala’s Moving Average Convergence Divergence (MACD) indicator shows the MACD line (blue) on the verge of crossing above the signal line (orange) and zero lines. This suggests an increase in upward momentum and signals potential price growth. Additionally, the positive values returned by Gala’s Elder-Ray Index indicate that bull power dominates the market.
If the bullish trend continues, Gala’s price may rally towards $0.049. However, a surge in selling pressure could result in a decline to the support level at $0.038.
Overall, Gala shows promise for extending its gains, supported by the MVRV ratio, positive funding rate, and indicators such as MACD and Elder-Ray. Investors may consider Gala as a potential investment opportunity in a thriving market.