VIRTUAL Price Plummets After 50% Rally: Key Factors Behind the Decline
VIRTUAL Price Drop – Virtual Protocol (VIRTUAL) made a notable appearance in the cryptocurrency market today, recording a sharp 50% price rally. However, the asset quickly failed to maintain these gains, as long-term holders seized the opportunity to sell, leading to a sharp price drop. According to CoinGlass, this sell-off came after a significant influx of capital into exchanges, signaling a possible shift in investor sentiment.
Why is VIRTUAL’s Price Falling?
The rapid price spike in Virtual Protocol was accompanied by significant spot inflows, with $13.5 million entering exchanges globally. This marked the largest inflow since the token’s launch, signaling a potential sell-off. Analysts believe this increase in inflows indicates that whales and investors moved assets to exchanges in anticipation of taking profits. This created selling pressure, resulting in VIRTUAL’s price retreating from the 50% gain to only 14% in less than an hour. As of writing, VIRTUAL was trading around $2.32.
Interestingly, while the price dropped, trading volume surged by a remarkable 138%, with $755 million in trades. This massive spike in volume also hinted at active participation from intraday traders.
Bearish Market Sentiment and Liquidation Risks
Amid the volatility, VIRTUAL’s Open Interest (OI) increased by 25%, suggesting that new positions were being formed. Current liquidation levels were set at $2.24 on the downside and $2.45 on the upside. If the price rises to $2.45, around $6.5 million in short positions could be liquidated. However, if sell-offs continue and inflows persist, the price might drop to $2.24, liquidating approximately $3.72 million worth of long positions.
These indicators point to a bearish sentiment, with bears gaining the upper hand in the market.
VIRTUAL Price Drop: Price Resistance and Potential Corrections
According to AMBCrypto’s technical analysis, VIRTUAL achieved a breakout target after its recent rally, breaking through an inverted head and shoulders pattern. However, the price faced strong resistance at the $3 level, which has consistently been a major selling zone since January 2024. This resistance has caused a significant price drop each time VIRTUAL approached it.
Given the current market sentiment and whale activity, there are indications that VIRTUAL could experience further price corrections in the near term, potentially continuing its downward trend.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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