Whale investors’ accumulation of tokens has positioned Gala (GALA) for a substantial recovery. The token holders remain optimistic about the coin’s future prospects despite a recent 28% price correction in just 48 hours, driven by broader market sentiment.
Whales Accumulate GALA During Price Decline
While the recent price drop may have discouraged some investors, it has acted as a bullish trigger for a specific group of large wallet holders, known as whales. Instead of selling their holdings during the decline, these whales have seized the opportunity to accumulate more GALA tokens.
Addresses holding between $1 million and $10 million worth of GALA have added $160 million to their portfolios, bringing their total holdings to an impressive $504 million. This accumulation by whales suggests a strong belief in the potential recovery of the token price.
The Market Value to Realized Value (MVRV) ratio, which measures investor profit and loss, further supports the notion of a potential recovery for Gala. Currently, Gala’s 30-day MVRV stands at -21%, indicating losses for investors. However, historical data shows that when GALA’s MVRV falls between -14% and -24%, it often precedes significant rallies, making it an ideal opportunity zone for accumulation.
This sentiment of accumulation among investors, driven by the low Gala price, could translate into a further uptick in the asset’s value, as more market participants recognize the potential for growth.
Gala Price Prediction: Recovery Expected, Rally Uncertain
As of writing, the Gala price stands at $0.044, having bounced off the $0.039 support floor. Based on whale accumulation and a favorable MVRV ratio, GALA is poised for further growth.
If Gala successfully tests $0.065 as resistance, it would mark a substantial 43% recovery for the asset. However, it is important to note that this recovery does not necessarily indicate an immediate rally, as such a move would require neutral to bullish market sentiment across the broader cryptocurrency market.
Investors should also be aware of potential risks. If the optimistic momentum fades before the price can breach the $0.050 level, the token may experience a drawdown. Furthermore, losing the $0.039 support floor would invalidate the bullish thesis, potentially leading to further price declines.
While the accumulation by whales and the favorable MVRV ratio paint a promising picture for the coin’s recovery, investors should exercise caution and conduct thorough research before making any investment decisions in this volatile market.
