Deep Dive
1. Margin Ratio Cuts (Bearish Impact)
Overview:
On October 21, Binance lowered GALA’s collateral ratio for Portfolio Margin from 60% to 40%, requiring traders to post more collateral or reduce exposure. This followed a similar adjustment for PM Pro accounts on October 24 (Binance).
What this means:
The change likely forced margin traders to either deposit additional funds or liquidate positions to maintain their margin ratios. With GALA’s 24h turnover at 23.2% (high volatility), even modest selling amplified downward pressure.
What to look out for:
Monitor Binance’s Unified Maintenance Margin Ratio dashboard for signs of further deleveraging.
2. Token Distribution Criticisms (Bearish Impact)
Overview:
Critics highlighted GALA’s tokenomics, particularly Bware Labs’ continuous selling of allocated tokens, as a structural headwind. A Sept 29, 2025, tweet by analyst Monis argued this creates “endless sell pressure.”
What this means:
With circulating supply at 46.59B (100% of total supply), ongoing distributions dilute value. This aligns with GALA’s -46.44% 90-day decline, underperforming BTC (-16.57%) and ETH (-21.34%).
3. Technical Weakness (Mixed Impact)
Overview:
GALA broke below the $0.01790 support level on November 14, triggering stop-loss orders. The RSI-14 (40.42) suggests oversold conditions, but the MACD (-0.000614) shows bearish momentum.
What this means:
Traders are exiting positions due to failed bullish setups. However, oversold RSI could invite short-term bargain hunting if BTC stabilizes.
Key level to watch:
A close below $0.01775 (Nov 14 low) may target the 2025 low of $0.00797.
Conclusion
GALA’s drop reflects margin-driven selling, tokenomics skepticism, and technical breakdowns. While oversold conditions could spark a bounce, sustained recovery requires resolving supply overhangs and improved GameFi sentiment.
Key watch: Can GALA hold $0.01775, and will Binance’s margin changes trigger further liquidations? Track trading volumes and whale wallets for clues.