Gala Games' in-business firm currency GALA rallied by nearly 350% in November, ignoring corrections beyond the superlative cryptocurrencies, including Bitcoin (BTC). Notably, GALA toll surged from $0.088 to $0.42 betwixt Nov. ane and November. 22.

GALA/USD iv-hr toll nautical chart. Source: TradingView

GALA's gains came primarily in the wake of a cost rally across a bulk of gaming and metaverse crypto assets. For instance, MANA, the native token of Decentraland — a blockchain-based virtual world that allows users to create, experience and monetize content and applications, climbed by more than than 30% calendar month-to-date.

Similarly, SAND, the native asset of decentralized metaverse project the Sandbox more than doubled in price in November. Gaming projects, including Dvision Network (DVI) and Ultra (UOS), have also witnessed more than than 100% growth in value.

Rally or correction ahead?

The upside moves across metaverse and gaming tokens picked upward momentum after Facebook decided to rebrand its parent visitor to Meta, with CEO Mark Zuckerberg admitting that they would exist "metaverse" —not social media — showtime.

GALA, whose issuance company Gala Games builds blockchain-based games, soared to its record high at $0.489 on Nov. 22 amid the metaverse craze. Nonetheless, the cryptocurrency also showed weaknesses in its ongoing bullish momentum equally information technology painted a dreaded head and shoulders (H&S) structure.

I of the most widely known and trusted technical patterns, H&S, appears when the price forms three peaks in a row, with the middle one, called the head, college than the other two, called the shoulders. Meanwhile, the three peaks take the same back up level, called the "neckline."

On its shorter-timeframe nautical chart, GALA's p fmed the left shoulder near $0.39, corrected lower towards its rising neckline support, rebounded towards $0.48 to course the caput, got pulled back again towards the same neckline, and has at present been recovering to form its right shoulder top, potentially about $0.43.

GALA/USD four-hour price chart featuring H&S setup. Source: TradingView

A breakout confirmation will appear as GALA closes below the neckline with disarming volumes. Should that happen, the Gala Games crypto would shift its downside target at a length equal to the maximum altitude between the acme of the head and the neckline.

Related: Metaverse gaming tokens Ethverse and Axie Infinity avoid crypto downtrend

That may end up putting GALA en road to $0.24, or about 34% below the potential point of breakout.

Bearish divergence/Bull Flag

In improver to H&South, GALA showed a clear difference between its ascension prices and falling momentum.

Notably, the cryptocurrency'due south price formed a string of higher highs. In contrast, its relative forcefulness index (RSI), which measures the magnitude of price changes to evaluate an instrument's overbought or oversold conditions, formed lower highs, every bit shown in the chart beneath.

GALA/USD four-hour price chart featuring bearish divergence. Source: TradingView

The GALA bull run also coincided with a subtract in trading volumes, signifying that its price uptrend did not accept stiff underlying momentum.

As a result, GALA confirmed bearish divergences between its rise price and falling trading volume, doubling downwardly the H&S setup as discussed above. On the other mitt, the entire bearish outlook risked invalidation should the price confirm a potential bull pennant setup instead, as shown in the chart below.

GALA/USD iv-hour price chart featuring balderdash pennant setup. Source: TradingView

The profit target for the bull pennant sits near $0.69, given GALA breaks out of its triangle range to the upside with a rise in trading volume.

The views and opinions expressed here are solely those of the author and practice not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves hazard, you should conduct your own research when making a decision.