Ethereum News Today: VIRTUAL Tumbles 12 Amid $1M Outflows and Bearish Derivatives Shift

VIRTUAL experienced a sharp 12% decline within 24 hours, driven by reported $1 million in net outflows and increased selling pressure across both spot and derivatives markets. The drop intensified bearish momentum, with negative funding rates observed, indicating that short positions are currently dominating the market environment [1]. Analysts have noted that the selling pressure is broad-based, affecting multiple aspects of the digital asset ecosystem [2].

The price decline follows a period of heightened volatility, as traders and investors adjusted their positions amid shifting market sentiment. Derivatives markets have shown signs of distress, with negative funding rates signaling a shift in favor of bearish participants [2]. This has raised concerns among bulls, who are now questioning the sustainability of any potential near-term recovery [2].

VIRTUAL's price dropped to a low of $1.18 during the 24-hour period, with market forecasts suggesting continued volatility in the $1.19–$1.42 range [1]. However, no official statements from project leadership or major exchanges have been released to confirm or explain the outflows, and no verifiable posts or interviews have emerged to address the situation [1]. Analysts have noted similarities with historical patterns of seasonal cryptocurrency declines but emphasized that significant evidence from official sources remains absent [1].

Institutional activity in the broader crypto market shows mixed signals. While VIRTUAL faced outflows, Ethereum-based products have seen significant inflows, with Ethereum ETFs attracting $2.2 billion in three days, outperforming Bitcoin ETFs for the third consecutive day [3]. However, these figures should not be interpreted as signs of broader stability for VIRTUAL, as they are not directly related to the asset’s performance.

The market’s response to the outflows was swift, with traders reacting to the red flags in funding rates and capital movements. Given VIRTUAL’s relatively small market capitalization, the $1 million outflow has had a disproportionately large impact, triggering stop-loss orders and further downward pressure [1]. Analysts suggest that the key to VIRTUAL’s near-term prospects lies in whether inflows can counteract the damage from recent outflows.

Despite the bearish environment, other parts of the crypto market have shown resilience. For instance, Layer 1 chains like Ethereum and Solana have posted strong weekly gains earlier in July, with Ethereum rising 27% and Solana gaining double digits [5]. However, these figures do not reflect VIRTUAL’s recent pullback and should not be interpreted as evidence of broader market strength for the asset.

As the market continues to process the outflow data, traders are closely monitoring on-chain metrics and sentiment indicators. The coming days will be critical in determining whether the drop is a short-term correction or the beginning of a more extended bearish phase. For now, the bearish narrative remains dominant, with bulls struggling to regain momentum amid continued uncertainty [1].

Source:

[1] AInvest (https://www.ainvest.com/news/virtual-tumbles-12-1m-outflows-bearish-derivatives-shift-2508/)

[2] AMBCrypto (https://ambcrypto.com/virtual-falls-12-in-a-day-amid-1m-outflow-can-bulls-recover/)

[3] CoinCentral (https://coincentral.com/ethereum-etfs-outpace-bitcoin-for-3rd-day-but-how-long-can-it-last/)

[5] CryptoDnes.bg (https://cryptodnes.bg/en/tag/layer-2/)