VIRTUAL Price Drops 10% – Can the Bulls Maintain Support at $0.70?

As traders look for signs of a market recovery, the price of Virtual Protocol [VIRTUAL] has plummeted by over 10% in the last 24 hours. This dip aligns with a weak technical outlook and declining network activity. The cryptocurrency ranks fifth for the largest declines among the top 100 coins, posting a significant 16% decrease over the week.

Key Takeaways

VIRTUAL's price has dropped more than 10% recently due to bearish market conditions.
The altcoin's technical indicators suggest ongoing selling pressure with significant declines in network activity.
Key support is around the $0.70 mark, which may determine future price movements.
Liquidity near $0.70 could trigger a rebound, despite ongoing bearish signals.

VIRTUAL crashes 10% - but will price defend $0.70 zone?

Current Price Analysis: Is Selling Pressure Increasing?

Charts indicate that VIRTUAL has been consistently declining since November 1st, following a brief rally following a crash on October 10th. According to DyorNetCrypto, the altcoin maintains a strong bearish trend score with multiple indicators confirming this outlook.

At the time of writing, both the 10-day and 25-day Simple Moving Averages (SMAs) were trending down, with prices falling below these lines. The red MACD bars further emphasize the bearish sentiment, while the On-Balance Volume (OBV) indicates weakness at a negative $1.55 million. Additionally, VIRTUAL is trading below the SuperTrend indicator and under the Ichimoku cloud, all of which points to continued bearish pressure.

VIRTUAL Source: TradingView

Analyzing the price patterns reveals that VIRTUAL is experiencing compression. While this typically indicates that a potential reversal could be on the horizon, it is critical for the price to remain above the $0.70 level. An oversold Relative Strength Index (RSI) may support a potential rebound. However, if VIRTUAL falls below this critical level, it will likely increase selling pressure, coinciding with the negative technical indicators.

Declining Network Activity

Network activity metrics—such as volume, liquidity, transaction fees, and the number of holders—show a consistent decline. According to data from CoinMarketCap, the number of holders has shrunk to 1.03 million in the past week.

Since November began, the trading volume for VIRTUAL has decreased drastically from approximately $1 billion to just $80 million, marking a tenfold decline. Meanwhile, liquidity has only halved, currently at $13 million.

Virtual Protocol Source: DefiLlama

Moreover, the platform's fee revenue has diminished over five quarters. Revenue peaked at $20 million shortly after launch but has since declined steadily to $8.51 million.

Could VIRTUAL Rebound at $0.70?

Despite the bearish indicators and declining metrics, market sentiment around the liquidity heatmap offers some hope. It appears that VIRTUAL is finding some stability around the $0.70 mark, with liquidity concentrated in that zone, which could prompt a rally when the price touches it.

Liquidity Zones Source: CoinGlass

Additionally, VIRTUAL is forming clusters of liquidity above $0.72, acting as a magnet for price increases. The highest liquidity concentration reported for the day is around $0.80, which could serve as a potential target for traders. It is crucial to note that despite these indicators, the price is currently surrounded by two liquidity clusters. More liquidity is also building near the $0.70 mark, which may constrain any upward price movement.

Conclusion

In summary, while VIRTUAL experiences adverse market conditions reflected in declining prices and network activity, the support level at $0.70 presents a critical point for potential recovery. Traders should closely monitor how this level performs in the near future.