VIRTUAL, the Token behind the Virtuals Protocol platform for creating and monetizing AI agents, has increased 29% in the past 24 hours, becoming the top gainer in the market.
Despite the spike, large outflows from VIRTUAL’s spot market suggest that speculative trading, rather than real demand, may be driving the rally, casting doubt on the sustainability of the company. It.
Withdrawals from VIRTUAL in the spot market indicate weak buying activity
VIRTUAL is currently trading at $3.82. Its price has increased 29% in the past 24 hours, surpassing the top 100 cryptocurrencies by market capitalization.
However, continuous outflows from its spot market over the past two days caused concern. According to Coinglass, VIRTUAL’s spot market saw $4 million in withdrawals during this period, indicating sell-offs.
When the price of an asset increases but outflows from the spot market occur, this indicates that despite the increase in market value, investors may be selling or withdrawing the asset. This shows caution or lack of trust, as some participants may be taking profits.
The lack of widespread participation from the market suggests that VIRTUAL’s rally is largely driven by speculative trading from a small number of investors.
The Token’s declining Chaikin Money Flow (CMF) also corroborates this pessimistic view. Up to this point, VIRTUAL’s CMF is in a downtrend and seems to be about to fall below the zero line.
When the price of an asset increases, while the CMF decreases, this shows that the price increase is not supported by strong buying pressure. This indicates that this price rally is driven by short-term factors rather than sustained demand and that a reversal or weakening in the price trend is likely.
VIRTUAL Price Forecast: Falling demand challenges price recovery
Measurements from VIRTUAL’s Fibonacci Retracement tool show it is currently trading below its all-time high of $5.25, which is a key resistance level.
However, the Token’s reduced demand may make it difficult to replicate these high prices. As VIRTUAL’s selling pressure increases, its price falls to $2.25, where support is present.
Conversely, if demand for the VIRTUAL Token recovers, its price could return to its all-time high and challenge to surpass this level.
