VIRTUAL Plummets 10% — Is This the Perfect Storm or a Hidden Opportunity at $0.70?

VIRTUAL Plummets 10% — Is This the Perfect Storm or a Hidden Opportunity at $0.70?

When AI-driven crypto coins take a nosedive like Virtuals Protocol (VIRTUAL) just did—dropping over 10% in a single day—it’s enough to make even the savviest traders bite their nails. But hey, isn’t that volatility part of the game we keep signing up for? VIRTUAL didn’t just stumble; it tumbled, landing fifth on the list of the top 100 coins with a brutal 16% weekly drop. So, the burning question now: are we staring at a bottom, or is this just the calm before the next storm? Technical charts lay out a bleak story with bearish indicators flashing red lights everywhere, yet there’s a glimmer of hope as the price hovers near a crucial $0.70 support zone that could spark a rebound. Meanwhile, network activity’s cooling off too—volume, liquidity, fees, all shrinking—which begs the question: is this the silent prelude to a big bounce, or a signal that sellers still hold the reins? Let’s dig deep into the numbers, trends, and heatmaps to see if VIRTUAL is prepping for a comeback or sinking further into the abyss. LEARN MORE

AI crypto coins continue to crash as traders anticipate a reversal to the upside.

Virtuals Protocol [VIRTUAL] price crashed by more than 10% in the past 24 hours, at press time, aligning with the weakness in the technical outlook and network activity.

The altcoin was fifth in terms of market drop across the top 100 coins, with a weekly drawdown reaching 16%.

VIRTUAL price analysis: Selling pressure ahead?

Price action charts show that VIRTUAL has been in steady decline since the 1st of November. This ongoing correction followed a brief rally that occurred ten days after the crash on the 10th of October.

According to DyorNetCrypto, the altcoin’s trend score remains strongly bearish, supported by multiple indicators. 

At press time, the 10‑day and 25‑day SMAs were both pointing downward, with prices trading below them. The MACD bars were red, reinforcing the bearish structure, while the OBV reflected weakness at negative $1.55 million.

Additionally, Virtual Protocol was trading below the SuperTrend, and its price sat under the Ichimoku cloud, both signaling continued bearish pressure.

VIRTUAL

Source: TradingView

Pattern-wise, VIRTUAL’s compression was tightening, suggesting a potential reversal was coming. However, the price does not need to fall below the $0.70 zone. The RSI was oversold, adding confluence to the potential bounce.

Conversely, losing this zone would escalate sell pressure. This comes as network activity also follows the technical outlook.

Network activity is falling too!

Network activity, including volume, liquidity, fees, and the number of holders, has been declining.

As per CoinMarketCap data, the number of holders has been declining over the past week, reaching 1.03 million as of writing.

Since the start of November, VIRTUAL’s token volume has dropped from around $1 billion to $80 million. This represents a 10X decline, while liquidity has only lost half of its initial value, reaching $13 million.

Virtual Protocol

Source: DefiLlama

Moreover, the ecosystem’s fee revenue has declined over the past five quarters. Shortly after launch, quarterly revenue peaked at $20 million, but it has since fallen steadily to $8.51 million.

Will VIRTUAL bounce from $0.70?

While all metrics and technicals point to a continued price weakness, the liquidity heatmap suggested otherwise.

The structural outlook seemed to be stabilizing around $0.70. Liquidity was stacked at this zone, and the reaction after touching it each time showed it could ignite a bounce.

VIRTUAL

Source: CoinGlass

On the other hand, VIRTUAL was forming more clusters above $0.72. As VIRTUAL now starts to rise, the clusters act as a price magnet for the altcoin.

The uppermost liquidity concentration for the day’s data was around $0.80, which could be a target.

Worth noting, VIRTUAL was sandwiched between two liquidity clusters, and the price seemed to be headed north. However, there was more liquidity building around $0.70, which could hinder price appreciation.


Final Thoughts

  • VIRTUAL drops 10% due to a technical breakdown and weak network activity. 
  • The liquidity above the current price could trigger a reversal if bulls take control. 

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