VIRTUAL Plunges 20% on Liquidity Outflows Sector Weakness Whale Movements

VIRTUAL’s token price plunged 20% in a sharp selloff driven by liquidity outflows, declining open interest, and broader sector weakness, raising questions about the token’s recovery potential. Traders pulled nearly $9 million from derivatives markets, with open interest falling 5.51% to $172.21 million, signaling waning bullish momentum [1]. Liquidations totaled $564,000, while funding rates neared zero, hinting at shifting market sentiment. Meanwhile, memecoins as a category dropped 2.8% weekly, with VIRTUAL underperforming by 3.45%, exacerbating concerns about its viability.

Technical analysis highlighted a critical breakdown: the June 22 support trendline was breached, leaving $1.27 as the next key level to monitor [1]. This breakdown aligns with broader selling pressure from DeFi and decentralized exchanges, where spot volume cratered from $6.5 million to $650,000 in days, reflecting a collapse in trader confidence.

Amid the turmoil, large-scale movements of $67 million in VIRTUAL into exchanges like Binance and Bybit—tracked by Arkham Intelligence—sparked speculation about whale activity. Analysts remain divided: one interpretation suggests accumulation by institutional investors, potentially setting the stage for a supply squeeze and price rebound. Conversely, the influx could signal preparation for a larger sell-off, with increased exchange holdings enabling a further selloff wave [1].

The token’s struggles are compounded by structural weaknesses. Funding rate compression and negative market breadth, coupled with weak volume, indicate a fragile ecosystem. Short-sellers now hold a strategic advantage, and any shift toward negative territory could trigger cascading liquidations. While the token’s 33% monthly sector performance offers some optimism, VIRTUAL’s 3.45% decline underscores its vulnerability to market corrections.

Market observers caution that the path forward remains unclear. If whales are indeed accumulating, a rebound could materialize quickly once buying resumes. However, without a broad market catalyst or intervention from the project’s team, the risk of further declines looms. The coming weeks will test whether VIRTUAL can stabilize or if the sell-off represents the beginning of a deeper correction.

Source: [1] [VIRTUAL Tanks 20%—Is a Comeback Still Possible?](https://cryptonewsland.com/virtual-tanks-20-is-a-comeback-still-possible/)