• Will the ‘contagious’ meta-trend help GALA recover?

  • Yesterday, the cryptocurrency market experienced a major meltdown. The global crypto-market cap fell by more than 14 percent, with most large-cap coins losing 20 percent to 30 percent of their respective values.

    Meta-coins were no different. They, too, succumbed to the broader downward trend. However, as of press time, the majority of the tokens in the aforementioned category had begun to offset their losses. Individual daily gains of 3% to 9% were recorded by MANA, SAND, and ENJ, for example.

    bucking the trend

    GALA, one of the most recent additions to this list, has acted in a slightly different manner. Despite falling to $0.36 yesterday, the daily candle on its chart was green. This essentially means that the alt’s closing price on Saturday managed to claw its way back up and compensate for the low opening figures.

    GALA, on the other hand, was trading in the red at the time of writing.

    A couple of metrics were able to highlight the reason for the alt’s exceptional behavior. To begin, Santiment’s trend-gauging screener displayed an intriguing datapoint.

    GALA’s exchange inflows anomaly was the second-most inflated at press time, with over $2.12 billion in volume.

    A spike in this metric on any given day usually indicates the presence of a selling bias among market participants. However, GALA’s market appears to be devoid of the same this time around.

    The HODLing/accumulating trend was confirmed by GALA’s age-related metrics.

    Let’s start with the deposit transactions. This indicator’s chart hasn’t seen any recent spikes. In fact, the deposit transaction curve has only dipped lower in recent hours. Surprisingly, a similar trend was observed with the age consumed metric as well.

    While the former focuses on the amount of GALA deposits received and sent each day, the latter tracks the movement of previously idle GALA tokens. A spike in deposit transactions usually indicates an increase in short-term sell-side pressure, whereas the same on the age-consumed chart indicates the movement of tokens between addresses.

    As a result of the aforementioned metrics’ relatively low levels, it can be argued that market participants haven’t yet entered a typical sell mode.

    Furthermore, the mean coin age curve has risen sharply over the last few days. When coins get older, or their age increases, it usually means that HODLers are holding on to their coins. Such coins eventually become dormant, assisting the underlying asset’s long-term price retention.

    So, once again, there is no sell-side pressure at the moment.

    Despite a recent decline, the coin’s MVRV ratio remains in the positive range. At the time of publication, it had a reading of more than 1245 percent. This essentially means that investors are currently earning significantly more than usual in the GALA market.

    To some extent, this gives HODLers more incentive to stay in the game for a longer period of time.

    So, with no sell-bias present, GALA would most likely revert to its uptrend on the chart within the next few trading sessions. Furthermore, the overall trend of the meta-ecosystem is contagious. In November, the majority of the coins in this space rallied and set new highs one after the other.

    So, with these coins already showing signs of recovery, GALA will find it difficult to remain isolated from the broader meta-uptrend for long.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0