Gala (GALA), the gaming token, has performed well in the past few days after some important announcements. The token earlier this week traded around $0.04022884 before it slightly retraced to $0.03929 today. Its upcoming collaboration with Hollywood celebrities and the announcement of new projects could have caused the price jump.
With the general slump of the crypto market in 2022, the GALA network has found innovative ways to remain relevant. The network recently partnered with two Hollywood A-listers to bring more publicity to the crypto project.
Town Star is an example of a game released on the GALA network for gamers, and VOX is an NFT collectible series. Moreover, GALA, the native token in the Gala Games network, gives gamers access to in-game assets.
With GALA, players can purchase non-fungible tokens (NFTs). Also, the users can participate in the governance of the ecosystem.
Gala Partners With The Rock And Mark Wahlberg
Gala Games had announced its intention to partner with great Hollywood stars Dwayne “The Rock” Johnson and Mark Wahlberg. This announcement had a noticeable impact on the token's price, which rose to 68%. The collaboration with Hollywood stars is with the intent to produce movies.
The network also announced its intention to go into mobile gaming and will serve as the gas token for Gala Music and Gala film. With the current development, users who want to collect digital items like NFTs will require gas payments with GALA.
This announcement comes in light of the recent trends in the crypto world of engaging celebrities to project a great image of the brand. Ufc star and former champion Connor McGregor partnered with Tiger Trade.
Tennis legend Maria Sharapova was not left off the train as she famously collaborated with MoonPay. Also, American rapper Snoop Dogg has been actively involved in crypto activities, recently collaborating on numerous projects. These projects include Web3, games, and NFTs as he promotes his pro-crypto stance to followers.
The Dangers Of Celebrity Endorsements
Celebrities have the advantage of many people who actively follow their activities on social media and seek to emulate them. Crypto developers have tapped into this resource, partnering with these celebrities to promote their projects to a larger market.
However, a celebrity endorsement does not always guarantee the authenticity of a project, with many cases proving it. For instance, Tom Brady, Gwyneth Paltrow, and Madonna are some notable names currently battling lawsuits from investors after the collapse of FTX.
The lawsuit followed after some investors filed a class-action suit, against other celebrities, such as Justin Bieber and Serena Williams, for their role in promoting the Bored Ape Yacht Club NFTs. With investors annoyed over the loss of funds, the lawsuits stated that the public figures did not disclose enough information.
According to a statement by the Security and Exchange Commission (SEC) in 2017, celebrity and social media endorsements may be unlawful. The SEC explained that it becomes unlawful if these celebrities withhold the nature, source, and amount of compensation paid for their endorsement.
Users and celebrities should take a more cautious approach and do proper research before investing. FTX rewarded celebrities like Tom Brady and Gisele Bundchen with undisclosed equity stakes. However, its crash left numerous investors stranded.
What Next For GALA?
The GALA token has performed well in the past few days, with a significant price increase. The current price support levels are $0.033520, $0.037013, and $0.039293. On the other hand, the resistance levels are $0.045066, $0.048559, and $0.050839. GALA is currently trading at $0.039209, closer to a resistance level.
It is currently above its 50-day Simple Moving Average (SMA), which means its short-term outlook is bullish. The token has dropped below its 200-day SMA. This means that despite its current performance, it might see a bearish reversal in the coming weeks. GALA's price rally might not sustain as it is already in decline.
From the candlestick formation on the chart, it is evident that the token was in an uptrend, with the formation of green candles in the uptrend. However, a red candle is forming today, January 11, as the asset's price has dropped from yesterday's high.
The Relative Strength Index (RSI) of the asset is at 79.32, which shows that it is currently in the overbought zone. However, investors must be cautious since the RSI line seems to be retracing and falling back into the channel. So, they should expect the price to dip further.
The Moving Average Convergence/ Divergence (MACD) is also bullish on the GALA chart. The MACD is above its signal line and looks set to continue its rise. While the announcement of the collaboration with Hollywood stars spiked the price of GALA, the momentum is short-lived.
On the price charts, GALA recorded positive moves in the past few days, but the rally seems to have burned out. Investors holding long positions can take profit as the asset will likely decline. Cryptocurrency projects can turn into pump-and-dump schemes in an instant hence the need for sound investment knowledge.
The above article is for informative purposes alone and not the official view of the Margex platform. It is also not financial advice or a trading guide. Readers must do proper research, conduct unbiased assessments, and consider their financial abilities before investing or trading due to its risks. When in doubt, kindly contact your financial advisor.