Key Takeaways

Increased activity from "whales" and a rise in large trades indicate a trend of early accumulation and growing confidence among investors.
If the dominance of buyers continues and Spot market activity picks up, VIRTUAL could maintain its bullish momentum.

VIRTUAL has made a remarkable comeback, with its price soaring by 90% over the past week. However, as of the latest updates, the token has pulled back by 8% and is trading close to $1.40. The factors contributing to this weekly surge in VIRTUAL have been examined by AMBCrypto.

Heightened Optimism for Virtual Protocol

The recent price increase signals a growing confidence in Virtual Protocol. Whale investors in both the Spot and Futures markets appear to be driving this price rise.

AMBCrypto's assessment of the token's Average Order Size metric shows a notable increase in large trades, reflecting heightened interest from significant traders. This situation suggests the possibility of early accumulation, which could set the stage for more sustainable price rallies.

VIRTUAL whale activity Source: CryptoQuant

Buyer Dominance Amid Slowing Spot Volume

Despite the bullish sentiment, not all indicators align with the ongoing rally. The market is currently characterized by a struggle: buyers are actively stepping in, demonstrating faith in the asset's potential, while at the same time, trading activity on Spot exchanges is decreasing. This trend can typically foreshadow either a phase of consolidation or a possible short-term correction.

Historically, activity in the Futures market often precedes Spot market movement. With this in mind, it could merely be a matter of time before Spot activity catches up.

VIRTUAL trading activity Source: CryptoQuant

The current dominance of buyers in both the Spot and Futures markets plays a crucial role in influencing VIRTUAL's price direction. If this buying pressure continues to overshadow the drop in Spot market activity, the token may sustain its upward movement. Conversely, if the momentum diminishes, VIRTUAL could retrace to lower support levels before attempting to rally again.

Virtual protocol taker CVD Source: CryptoQuant

Technical Indicators Reveal…

Analyzing the daily chart, VIRTUAL's price action indicates a bullish trend. After a prolonged period of consolidation over the past four months, the token's structure has started to show signs of bullishness.

On October 10th, many investors anticipated a price dip when the altcoin fell below its pennant triangle pattern. However, in the past week, the token has rebounded sharply, successfully breaking the critical resistance level of $1.4191.

Even with the slowdown in Spot market activity, the price range between $1.0177 and $1.2030 presents a strategic zone for long-term holders. They may consider re-entering the market if any corrections occur.

VIRTUAL price analysis Source: TradingView

What Lies Ahead for VIRTUAL?

At present, the market sentiment appears to be cautiously optimistic. A sustained level of buying and increased activity within the network would further support the current upward trend. The upcoming trading sessions will likely be pivotal in determining whether this rally can transition into a more extensive upward movement or if it will stall as the market adjusts.