Virtual Protocol [VIRTUAL] has been garnering attention amidst the current market volatility due to its remarkable performance.
Nevertheless, as of December 30th, VIRTUAL, along with Bitcoin [BTC], Ethereum [ETH], and XRP, appears to be facing challenges in gaining traction, sparking concerns about a potential correction in prices.
Analyzing the current market situation, it seems that investors holding onto their positions for the long term are locking in their gains following a significant 42% increase in value over the past week, during which the price surged from $2.44 to $3.47.
It is imperative for investors to assess whether the price will find stability at its current level or if there might be a price downturn in the near future.
Projections for VIRTUAL Prices
Based on CryptoCrypto’s technical analysis, VIRTUAL recently broke out of a minor consolidation phase lasting four hours, which had formed around the $3.70 threshold.
As a result of this breakout, the asset has breached one of its prominent support levels, potentially enabling bears to push the price down by an additional 7% to the next support level at $3.24.
If VIRTUAL manages to hold above this level, there is a chance of a price recovery. Otherwise, traders and investors might witness a further decline in prices towards the $2.90 mark in the future.
Mixed Views, on-chain Activity
With the potential for a price correction and recent price adjustments, traders appeared wary of establishing new positions, as indicated by the data from the on-chain analytics firm Coinglass.
Reports showed an 18% decrease in VIRTUAL’s Open Interest over the last 24 hours.
Meanwhile, long-term holders were accruing the asset, demonstrating their trust and enthusiasm.
Data on VIRTUAL’s spot inflow/outflow highlighted a moderate outflow of $4.80 million worth of VIRTUAL from exchanges to long-term holders’ wallets during the same timeframe.
In the realm of cryptocurrencies, “outflow” denotes the transfer of assets from exchanges to long-term holders’ wallets, suggesting potential accumulation and heightened buying pressure.
Considering all these on-chain statistics in conjunction with the technical analysis, there seems to be a bearish sentiment in the short term for the asset, hinting at a possible price correction.
However, the outlook remains bullish for investors in the long term, potentially propelling prices upward following a successful correction.
As of the latest update, VIRTUAL was trading around $3.46, displaying a drop in price of over 6.45% in the last 24 hours.
During the same period, trading volume surged by 3.5%, indicating increased engagement from traders and investors compared to the previous day.