Virtual Protocol Drops 13.95% Amid Whale Concerns
1min read In the past 24 hours, Virtual Protocol [VIRTUAL] experienced a significant decline, with its value dropping by 13.95 percent, leading to substantial market losses. This sharp decrease has raised concerns among market analysts, who suggest that the asset may continue to decline in the near future, although there is still a possibility of a short-term rally.
One of the primary factors contributing to the market's pessimism is the concentration of VIRTUAL's supply in the hands of large holders, or "whales." According to recent data, the top 100 addresses now control 93 percent of VIRTUAL's total supply. This level of concentration raises concerns about market stability, as any significant selling by these whales could trigger a cascade of liquidations, further driving down the price.
The risk of a liquidation cascade is not the only concern. Smart money wallets, known for their strategic and profitable bets, have also been in profit, with gains of 14.35 percent in the past 24 hours. If this group decides to sell, it could add more downward pressure on VIRTUAL’s price, exacerbating the potential for a market shakeup.
Despite these risks, spot traders have continued to buy the asset. In the last 24 hours, spot traders purchased $1.42 million worth of VIRTUAL, continuing a broader accumulation trend. Over the past week, traders acquired a total of $10.80 million worth of the asset. This persistent buying goes against the current market trend and runs in contrast to the risk posed by whales controlling the majority of the supply.
Technical analysis of VIRTUAL's 4-hour chart suggests that the asset may be heading for a deeper decline in price. VIRTUAL has already broken below two key support levels, first at $1.62 and then at $1.46, as selling pressure intensifies. If this pressure continues, VIRTUAL could fall to $1.27, with the next possible support level at $1.064.
Analysis of the Relative Strength Index (RSI), which measures the speed and change of momentum, also points to a likely continuation of the downtrend. However, a potential turning point may be near. If the RSI drops below the oversold level of 30, the asset could experience a technical rebound. The RSI was 35.60 at press time. Any move below this threshold could indicate a reversal and open the door for a short-term rally.
In summary, VIRTUAL faces a serious downside risk due to concentrated supply and increased selling pressure. At the same time, the asset still holds potential for a rebound if technical indicators shift and spot buyers continue their accumulation. The market's next moves will be closely watched as these dynamics play out. 
