3 reasons for record low Gala crypto price plunge

3 reasons for record low Gala crypto price plunge

The Gala Crypto Price and the State of the Blockchain Industry

The Gala crypto price has been on a sharp decline, reaching record lows and plunging more than 78% from its highest level. This decrease in demand for the Gala token has raised concerns about the platform and an ongoing lawsuit. However, to fully understand the factors behind this decline, we need to delve into the broader blockchain industry.

The Impact of Fed Interest Rates on the Blockchain Ecosystem

One of the main reasons for the bearish trend seen in the Gala crypto price is the effect of rising interest rates by the Federal Reserve. The Fed has been steadily increasing interest rates, taking them from 0% during the pandemic to a range between 5.25% and 5.50%. This has had an inevitable impact on all assets, including cryptocurrencies.

Higher interest rates lead to a stronger US dollar index (DXY), which measures the value of the USD against a basket of currencies. The DXY has recently surged to a five-month high of $105. In comparison, cryptocurrencies are facing higher yield competition, as money market fund yields have risen to a multi-year high of almost 6%. Consequently, many investors are moving their funds from risky assets like crypto to cash, resulting in a decline in demand for Gala and other cryptocurrencies.

Lack of Traction in the Gala Ecosystem and NFT Sales

In addition to the impact of interest rates, Gala’s price has also been affected by the lack of traction in its gaming ecosystem. Despite the launch of several games like Townstar, Dragon Strike, and PokerGo, these games have not gained mainstream popularity. Moreover, NFT sales within Gala have dropped, indicating a lack of interest and engagement from users.

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For any blockchain ecosystem to thrive, it needs active participation from developers and users. In Gala’s case, the games and NFTs fail to attract sufficient attention and utilization, which ultimately affects the value of its native token.

Internal Wrangling and Its Impact on Gala’s Price

Internal conflicts can have a significant impact on any project or asset, including Gala’s crypto price. In this case, co-founders Wright Thurston and Eric Schiermeyer have been embroiled in a legal battle over a $130 million theft, which has further eroded investor confidence. Historical trends indicate that investors tend to avoid assets that are entangled in legal issues or internal disputes. Thus, Gala’s ongoing court case adds another layer of concern and instability to the project.

Gala Crypto Price Forecast

Analyzing the daily chart, it is evident that Gala’s crypto price has been on a strong downward trend for the past few months. It has broken below key support levels at $0.018 and $0.015, the lowest levels observed in June this year and December last year. Furthermore, Gala remains below the 50-day and 100-day moving averages, indicating a weakening trend.

Given the current market conditions and declining demand, it is likely that Gala’s price will continue to fall. Sellers are targeting a crucial support level at $0.010, and if this level is breached, the sell-off could intensify. It is essential for investors to set a stop-loss at $0.02 to mitigate potential losses.

How to Buy Gala

For those interested in investing in Gala, it is crucial to follow the correct procedures. Here is a step-by-step guide:

1. Set up a cryptocurrency exchange account: Choose a reputable exchange that supports Gala. Some popular exchanges include Binance, Coinbase, and Kraken.
2. Complete the account verification process: Provide the necessary identification documents, such as a passport or driver’s license, to adhere to regulatory requirements.
3. Deposit funds into your account: Transfer fiat currency or other cryptocurrencies to your exchange account.
4. Find Gala on the exchange: Search for Gala among the available cryptocurrencies on the chosen exchange.
5. Place a buy order: Determine the amount of Gala you want to purchase and place a buy order at the prevailing market price or set a specific price limit.
6. Secure your Gala: Once your buy order is executed, transfer your Gala tokens to a secure wallet that you control, such as a hardware wallet or a non-custodial wallet.

By following these steps, investors can acquire Gala tokens and participate in the blockchain ecosystem.

In conclusion, while the decline in the Gala crypto price may be concerning for investors, it accurately reflects the challenges faced by Gala’s ecosystem. The impact of rising interest rates, the lack of traction in games and NFT sales, and internal conflicts have contributed to this downward spiral. However, with a comprehensive understanding of these factors and by following the appropriate investment strategies, individuals can navigate the volatile blockchain industry more effectively.

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