Why the Gala crypto price has reached a record low
The Gala crypto price is currently approaching its record low. It has experienced a significant drop of more than 78% from its highest level. There are several factors contributing to this decline, including concerns about the platform and an ongoing lawsuit. Additionally, other cryptocurrencies such as Optimism, eCash, Injective, and XDC Network are also experiencing a similar downward trend.
Fed interest rates and ecosystem growth
There are three key reasons why the Gala crypto price has been on a strong bearish trend. Firstly, like other cryptocurrencies, it is being impacted by the rising interest rates set by the Federal Reserve.
During the pandemic, the Fed had lowered rates to 0%, but it has since increased them to range between 5.25% and 5.50%. In a recent monetary policy meeting, the bank indicated that it plans to implement an additional 0.25% rate hike.
High interest rates have a broad impact on all assets, including cryptocurrencies. They often lead to a stronger US dollar index (DXY), which has reached a five-month high of $105. Consequently, the dollar’s higher yield compared to most cryptocurrencies makes cash more appealing to investors, prompting them to shift their funds away from riskier assets like crypto.
Secondly, the Gala price has dropped due to the lack of traction in games within its ecosystem. While developers have launched several games, such as Townstar, Dragon Strike, and PokerGo, these games have not been able to achieve mainstream popularity. Additionally, NFT sales within Gala have declined.
Lastly, internal conflicts between the co-founders, Wright Thurston and Eric Schiermeyer, have negatively affected the Gala platform. The two are currently involved in a legal battle over a $130 million theft in a Utah court. Historically, assets with such internal issues tend to be avoided by investors.
Gala crypto price forecast
Analyzing the daily chart, it is evident that the Gala crypto price has been experiencing a strong bearish trend in recent months. It has dipped below key support levels at $0.018 and $0.015, marking the lowest levels since June of this year and December of last year. Additionally, Gala has remained below the 50-day and 100-day moving averages.
Therefore, it is likely that the Gala price will continue to decline as demand for the coin diminishes. Sellers will likely aim for the key support level at $0.010, with the recommended stop-loss for this trade set at $0.02.
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The Gala crypto price has experienced a significant decline recently, reaching a record low. This downward trend can be attributed to various factors, including the impact of rising interest rates set by the Federal Reserve, the lack of traction in games within the Gala ecosystem, and internal conflicts between the platform’s co-founders. It is essential for investors to carefully consider these factors and the potential risks associated with Gala before making any investment decisions. For the latest news and updates on the cryptocurrency market, visit Uber Crypto News.