GALA price increases by 90% in two days and whales benefit

GALA's price rally was one of the most impressive increases in the cryptocurrency sector's current uptrend. The alternative currency increased by more than 90% in 48 hours. This indicates that many investors have reaped the long-awaited profits, but for some, this is not the best result.

Investors expect gains

The recent rally, which took the GALA price to $0.076, was a painful sight for around 48% of altcoin holders. These addresses purchased their supply at a price lower than the trading price. However, this is not the case for the rest of the investors.

As around 50% of shareholders are currently in a state of anticipation and waiting for an increase which may be difficult to occur. This is because most of these investors purchased their coins near the all-time high, which would require a 750% price increase to become profitable.

Generally speaking, a sharp rise, as we have observed in this digital currency, leads to further upside. But that may not be the case this time. Especially since the whales have already started to make a profit and sell some of their supply. Which signaled a drop in prices last night.

Addresses holding between 100,000 and 10 million GALA sold more than 30 million GALA in ten days. The majority of these sales are concentrated at a time when the price of GALA begins to rise, making any further rise an absolute sales event.

Additionally, the profits made by altcoin holders are the largest since November 2021. The market value to realized value ratio (MVRV) assesses the average profit or loss of investors after acquiring the asset. Specifically, the 30-day MVRV reflects gains or losses from purchases from the previous month.

For the Gala token price, the 30-day MVRV indicates a profit of 88% for new investors. Which can lead to profit taking and boost sales.

Historical trends show that when MVRV exceeds 34%, large corrections often occur, leading to the term "danger zone" for this area. Since Gala is much higher than this threshold, the probability of making a profit is much higher.

GALA price forecast: will it fall?

The GALA price has a good chance of correction. The signs actually appear in the form of red candles, which appear on the daily time frame. If the whale sell-off continues, a pullback to $0.06 would likely erase a significant portion of recent gains.

However, if investors show resilience and refrain from selling, anticipating further rises, GALA price could rebound from $0.072. This would give GALA momentum to break the $0.0845 resistance level. Allowing a potential increase to $0.10. Thus invalidating the bearish thesis.

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