A mysterious investor made a bold move by withdrawing 854 Ethereum [ETH], valued at $2.9 million, from Coinbase to acquire 851,387 VIRTUALs, sparking rumors about the token’s future prospects.
This substantial acquisition raises speculation about whether Virtual Protocol [VIRTUAL] is preparing for a breakout.
Amidst the varied trends in the crypto market, the uptick in activity and essential metrics of VIRTUAL has attracted the interest of traders and analysts.
Analysis of VIRTUAL Price Indicates Resilient Performance
Currently, VIRTUAL is trading at $3.57, showing a 3.40% increase over the last 24 hours.
The token continues to exhibit a bullish trajectory within an upward channel, with a crucial resistance level at $3.58.
The Directional Movement Index (DMI) highlights a strong buying trend, with the +DI significantly surpassing the -DI at 28 and 11, respectively.
Additionally, the Average Directional Index (ADX) stands at 47, signifying robust trend strength. The stochastic RSI at 44.47 suggests an impending overbought scenario, indicating a need for short-term caution.
Nonetheless, the consistent uptrend signals momentum, with corrections potentially offering accumulation opportunities.
Noteworthy Growth in Daily Active Addresses
The increase in daily active addresses mirrors heightened network activity, reaching a recent peak of 1,290 addresses.
This surge reveals escalating user engagement, possibly fueled by speculative interest or broader use cases within the Virtual Protocol ecosystem.
A sustained rise in active addresses often signals improved fundamentals for a token. Consequently, the surge in on-chain activity supports the narrative of a potential bullish breakout for VIRTUAL.
Expanding Network Utility
Transaction activity for VIRTUAL has notably surged, with the transaction count reaching 763 in the latest data.
This surge signifies a substantial increase from levels below 200 in early December, showcasing nearly a fourfold rise in activity.
The sharp uptick reflects growing network utility, driven by increased trading and interactions within the Virtual Protocol.
The spike indicates that both speculative and authentic use cases are gaining traction, aligning with other bullish indicators and fostering optimism for further price appreciation.
Long/Short Ratio Reflects Cautious Optimism
The Long/Short ratio adds depth to the analysis, with 53.19% of positions favoring longs in comparison to 46.81% for shorts.
This data portrays a cautiously optimistic sentiment among traders, anticipating VIRTUAL to sustain its upward trajectory.
Moreover, the steady accumulation of long positions underscores mounting confidence despite resistance levels.
However, traders must remain wary of sudden shifts in sentiment, as external market influences could sway momentum.
Hence, VIRTUAL seems primed for a breakout. From the significant whale purchase to the surge in daily activity to 1,290 addresses, alongside positive market sentiment, the outlook appears bullish.
A successful breach of the $3.58 resistance level by VIRTUAL could trigger a substantial rally in the immediate future.