VIRTUAL's 50% Rally Fizzles: $13.5M Sell-Off Sparks Market Panic

Virtual Protocol's native token, VIRTUAL, has been making waves in the cryptocurrency market, with a significant price rally of over 50% on January 31, 2025. However, this impressive gain was short-lived as the asset experienced a substantial sell-off, with investors and whales dumping a massive $13.5 million worth of VIRTUAL tokens.

On-chain analytics firm Coinglass revealed that exchanges witnessed a significant inflow of VIRTUAL tokens, suggesting a potential sell-off by investors. This influx of tokens could lead to increased selling pressure and a further decline in the asset's price. Indeed, VIRTUAL's price has since declined, and it is currently trading near $2.15 with a mere 1.85% gain in the past 24 hours.

The market sentiment has shifted towards the bearish side, with traders also betting on the short side. Coinglass data shows that short-sellers are over-leveraged at the $2.396 level, holding a significant $8.30 million worth of short positions. In contrast, bulls are over-leveraged at the $2.125 level, with $2.14 million worth of long positions, which is one-fourth of the short positions.

Technical analysis suggests that VIRTUAL is at a breakout level of a bullish inverted head and shoulders price action pattern, appearing neutral. However, traders and investors who bought following the breakout may be exiting the trade by profit booking, which could lead to further price correction or consolidation at the current level.