Why the VIRTUAL Token Price Rally May Not Continue
VIRTUAL, the token behind Virtuals Protocol, a platform for creating and monetizing AI agents, has risen 29% in the past 24 hours, making it the market’s top gainer.
Despite the surge in prices, heavy outflows in the virtual spot market suggested that speculative trading may be driving the rally rather than actual demand, raising doubts about its sustainability.
Virtual spot outflows point to lower buying activity
virtual current transaction $3.82. Its price has increased by 29% in the past 24 hours, leading the top 100 cryptocurrencies by market capitalization.
However, continued outflows from the spot market over the past two days have sparked concerns. According to Coinglass, the VIRTUAL spot market saw $4 million in outflows during this period, indicating a sell-off.
When an asset rises in price but experiences cash outflows, this indicates that although its market value is increasing, investors may be selling or withdrawing from the asset. This signals caution or a lack of confidence as some participants may take profits.
The lack of broader market participation suggests that VIRTUAL’s price surge has been driven primarily by speculative trading activity from a handful of investors.
A plunge in the coin’s Chaikin Fund Flow (CMF) confirmed this bearish outlook. As of this writing, VIRTUAL’s CMF is in a downtrend and appears to be on the verge of falling below the zero line.
When asset prices rise and CMF falls, strong buying pressure does not support rising prices. This suggests that the rise is being driven more by short-term factors rather than sustained demand, and that a reversal or decline could be a possibility. The price trend is weakening.
Virtual Price Forecast: Falling Demand Challenges Price Recovery
Readings from the VIRTUAL Fibonacci Retracement Tool show that it is currently trading below its all-time high of $5.25, which is a major resistance level.
However, waning demand for the token could make a return to this price peak difficult. once Virtual selling pressure increasesits price will fall to the support level at $2.25.
On the other hand, if demand for the virtual token picks up, its price could revisit all-time highs and attempt to rebound above that level.
Disclaimer
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