Amid the ongoing market recovery, Virtual Protocol’s native token, VIRTUAL, is gaining widespread attention due to its massive price momentum over the past 24 hours. On January 31, 2025, for the first time in the year, the asset witnessed a price rally of over 50%.
However, this massive upside rally attracted significant attention from investors, whales, and traders, resulting in the token losing the majority of its gains.
Data from the on-chain analytics firm Coinglass revealed that as the price soared, long-term holders, whales, and investors saw this as a perfect sell-off opportunity and began selling their VIRTUAL tokens.
On-chain metrics inflows/outflows revealed that exchanges across the cryptocurrency landscape have witnessed an inflow of a massive $13.5 million worth of VIRTUAL tokens. This inflow suggests a potential sell-off by investors amid the massive upside rally, which could lead to sell-off pressure and a further price drop.
However, VIRTUAL witnessed a price decline and experienced selling pressure.
The asset is trading near $2.15 and is currently holding only a 1.85% gain in the past 24 hours. At one point today, this gain was over 50%. During the same period, due to heavy participation from investors and traders, VIRTUAL’s trading volume surged by 280%, indicating huge participation.
But looking at the current market sentiment, not only investors but also traders have started betting on the bearish side, which has completely shifted the market sentiment.
Data from Coinglass revealed that the $2.396 level is where short-sellers are over-leveraged, holding a significant $8.30 million worth of short positions. Meanwhile, bulls seem to be exhausted, as they are over-leveraged at the $2.125 level, where they hold $2.14 million worth of long positions, which is one-fourth of the short positions.
According to expert technical analysis, VIRTUAL appears neutral as it is at a breakout level of a bullish inverted head and shoulders price action pattern. However, traders and investors who bought following the breakout have already gained massive returns, and they might be exiting the trade by profit booking.
Based on the recent price action and historical momentum, there is a strong possibility that VIRTUAL could continue to see some sort of price correction or consolidation at the current level.
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