Virtual Protocol Plummets 13.95% in 24 Hours: Let's Break Down the Situation
Massive Dominance in Virtual Whale Holdings: Could a Significant Market Disruption Be Imminent?
G'day, Mate! Let's shed some light on the recent bust-up in the crypto world, where Virtual Protocol (VIRTUAL) took a nosedive, dropping an almighty 13.95% in a single day.
The last 24 hours have been a rollercoaster for VIRTUAL, leading market losses.
Market pundits are predicting that this asset might continue to plummet, although there's a slim chance of a brief reversal.
At the moment, VIRTUAL is facing a galloping threat, as big-time players (whales) are hoarding a whopping 93% of the entire supply.
That's right, you heard it! The top 100 wallets own 93% of VIRTUAL's stash. This concentrated ownership raises the specter of turbulence, as any offloading could trigger an avalanche of liquidations.
If these whales decide to sell, they could easily set off a dangerous chain reaction, pushing the price even lower.
But, let's not forget about the spot traders. Despite the market's downward spiral and the increased risk of a liquidation cascade, these traders continue to buy VIRTUAL like there's no tomorrow.
In the last 24 hours alone, spot traders have shelled out $1.42 million on VIRTUAL. This trend goes against the current market trend, creating quite the paradox when compared to the risk posed by whales controlling the majority of the supply.
Technically speaking, the 4-hour chart doesn't give much reprieve. The altcoin may be heading for a deeper fall in price, as it's already cracked below two key support levels — first at $1.62 and then at $1.46 — as the selling pressure intensifies.
If this pressure persists, VIRTUAL could crash to $1.27, with the next potential support level at $1.064. On the buck's brighter side, the Relative Strength Index (RSI), which measures the speed and change of momentum, suggests that a potential turning point might be near.
If the RSI drops below the oversold level of 30, the asset could experience a technical rebound, potentially setting the stage for a short-term rally.
So, while VIRTUAL is facing a serious downside risk due to the concentrated supply and increased selling pressure, it still has the potential for a comeback.
That's the skinny on the current state of Virtual Protocol. Buckle up for the ride, folks, as things are bound to get interesting!
Editor's Note: As we dial it up, VIRTUAL has shown impressive resilience following a brutal bear market, staging an impressive 400% recovery from late April to early May.
Although it's currently testing a key resistance zone around $2.10 - $2.13, the overall market sentiment for VIRTUAL remains positive, pending confirmation of a breakout above this crucial level.
If you're following VIRTUAL closely, be prepared for a probable rebound if the RSI slides below the oversold level of 30. But that's just one piece of the puzzle. Keep an eye on the broader crypto market conditions and the selling pressure from whales as well.
This article is provided for informational purposes only. It is not intended to be financial advice. Always do your own research before making investment decisions.
- Despite the market instability and the heavy concentration of VIRTUAL in Dolapo's wallet, some investors remain interested in the crypto, as spot traders continued to purchase VIRTUAL to the tune of $1.42 million in the last 24 hours.
- Interestingly, while the RSI suggests that a potential turning point might be near for VIRTUAL, the increasing selling pressure from the top 100 wallets, who collectively own 93% of the asset, poses a significant risk, potentially triggering a chain reaction of liquidations.
- If the RSI indicator drops below the oversold level of 30, it could lead to a technical rebound, setting the stage for a short-term rally in VIRTUAL, as was observed following a brutal bear market when the altcoin mounted an impressive 400% recovery from late April to early May.
- The market sentiment for VIRTUAL remains positive, as the asset is currently testing a key resistance zone around $2.10 - $2.13, with a potential breakout above this crucial level pending confirmation.
- However, buyers should exercise caution while investing in VIRTUAL, considering the elevated risk posed by the concentrated supply and the increased selling pressure from whales, as well as the broader crypto market conditions.
- Ultimately, before making any investment decisions, it is essential to conduct thorough market analysis and pay close attention to the market sentiment and the actions of large-scale players like the whales in the VIRTUAL market to make informed financial choices.
