VIRTUAL Plummets 12.03% Amid Geopolitical Tensions and Sell-Offs

VIRTUAL, a prominent cryptocurrency, experienced a significant decline of 12.03% within a 24-hour period, dropping from $1.56 to $1.37. This downturn is part of a broader trend that has persisted throughout June, despite VIRTUAL maintaining a 106% gain on the 90-day Altseason Index, slightly ahead of SPX6900.

Geopolitical tensions, particularly the U.S.–Israel airstrikes on Iran on the late 21st of June, introduced fresh volatility into the market, affecting speculative assets across crypto markets. This event has contributed to the bearish sentiment surrounding VIRTUAL, with market analysis suggesting that the asset's downward trend may intensify in the coming trading sessions.

Spot trading activity for VIRTUAL has declined across both centralized and decentralized exchanges, indicating waning investor interest. At the time of writing, $680,000 worth of VIRTUAL had been sold in the past 24 hours on centralized exchanges, following two days of buying activity between the 19th and 20th of June. This sell-off occurred amidst falling prices and lower investor demand.

Decentralized exchange (DEX) activity also saw a significant drop, with active traders falling to just 1,600, reflecting the token’s declining utility. This decline in DEX activity mirrors the overall bearish sentiment in the market.

The recent sell-off of VIRTUAL can be attributed to traders on Bybit and liquidity providers from the on-chain protocol Aerodrome Finance. Aerodrome Finance removed $7.3 million worth of VIRTUAL from its liquidity pool, signaling a repositioning by liquidity providers to avoid further downside as trust erodes.

Funding Rates on Bybit turned sharply negative, dropping to -6.0%, while Binance and OKX posted positive Funding Rates of 5.0% and 1.0%, respectively. This negative rate on Bybit implies that most traders are shorting the asset, which is significant given that Bybit controls the second-largest trading volume of VIRTUAL.

Sentiment in the VIRTUAL market remains bearish, as evidenced by the drop in Active Addresses to 6,300, the lowest monthly level. This plunge confirms weakening participation, with traders exiting positions rather than re-entering them. The combination of global tensions and broader selloffs in speculative assets has left VIRTUAL’s short-term outlook fragile.

If the current trend continues, VIRTUAL’s position on the 90-day index is likely to slip even further, potentially leading to more losses in the near future. The overall market sentiment and geopolitical risks continue to pose challenges for VIRTUAL, making its future performance uncertain.