- VIRTUAL dropped 13.95% in a day, leading market losses.
- Whale wallets now control 93% of the total supply.
In the last 24 hours, Virtual Protocol [VIRTUAL] posted the steepest loss among major assets, dropping by 13.95 percent.
Market analysis suggested that the asset may continue to decline, although there was still a possibility of a short-term rally.
At press time, market sentiment showed that VIRTUAL faced a much greater threat as large holders continued to increase their share of the supply.
Whale acquisition of VIRTUAL remains a threat
According to Nansen, the top 100 addresses now hold 93% of VIRTUAL’s total supply. This concentrated ownership raises the specter of instability.
When large holders command the float, any offloading could set off a cascade of liquidations. If these whales decide to sell, they could trigger a major wave of liquidations that pushes the price even lower.
Source: Nansen
Nansen also reported that smart money wallets were in profit, with gains of 14.35% in the past 24 hours.
These wallets are known for making strategic and profitable bets. If this group starts selling, it could add more downward pressure on VIRTUAL’s price.
Spot traders continue to buy
Interestingly, despite the market’s decline and the increased risk of a liquidation cascade, spot traders continue to buy the asset.
In the last 24 hours, spot traders purchased $1.42 million worth of VIRTUAL.
Source: CoinGlass
This continues 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.
The implications for VIRTUAL’s market movement
Technically, the 4-hour chart offers little relief. It suggested that VIRTUAL may be heading for a deeper decline in price.
The altcoin 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.
Source: TradingView
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.
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.