Whale Movement of Virtual Protocol Tokens – What's Next for Prices?

A significant transfer of 7.958 million VIRTUAL tokens by a whale has sparked increased selling pressure, leading to a decline in the altcoin's price. However, retail traders are actively accumulating VIRTUAL, which may provide support for a potential rebound.

Key Takeaways

A whale has moved $7.958 million in tokens to sell, contributing to the current decline in VIRTUAL's price.
Retail investors are stepping in to buy the dip, providing crucial support for a recovery.
Following a recent peak of $1.8 days ago, VIRTUAL's price has fallen for two days and is currently at $1.52, reflecting a 13.29% drop within 24 hours.
The market is seeing increased bearish sentiment among whales, with many exiting their positions.

Virtual Protocol whale moves 7 mln tokens - What about price?

Whale Transfer of VIRTUAL Tokens

According to EmberCN, a prominent whale transferred a staggering 7.958 million VIRTUAL tokens valued at $13.45 million to Teneo. This whale has a history of sending tokens to exchanges in segments, and it is anticipated that the recent transfers may follow a similar pattern. Overall, this whale has moved a total of 26.42 million tokens, yielding $40.83 million in profits. These tokens were initially purchased in December 2023, and now the whale has completely offloaded its holdings. Typically, when a whale moves tokens during a market downturn, it signifies an increase in selling pressure, which can negatively impact buyer confidence and encourage small investors to sell.

Whales Modify Their Strategies

Interestingly, as the price declines, VIRTUAL whales have become more active in the Futures market. Data from CryptoQuant indicates a rise in large whale orders.

Virtuals protocol futures average order size

When whales dominate the Futures market, it usually means they are expecting ongoing volatility or further price drops. To safeguard their investments from additional losses, whales often prefer the Futures market for its inherent flexibility and leverage.

Can Retail Traders Provide Support?

While whale activities could further press prices downward, there remains hope for Virtual Protocol. Retail traders are stepping up as a vital support system. Retail investors on the Spot market have made considerable investments to accumulate VIRTUAL. Notably, the Spot Taker CVD has stayed positive and on the rise, indicating that buyers have primarily dominated the spot market despite recent price corrections.

Virtuals Protocol Spot taker CVD

This suggests strong conviction from small-scale investors who believe the current market dip will be temporary. Consequently, the Spot Netflow has been negative for five days, with the most recent figure showing outflows of $3.2 million, hitting a month-to-date low.

Virtuals protocol netflow

Historically, extended periods of negative netflow can exert upward pressure on prices, potentially leading to a rebound.

Are We Facing a Decline or a Recovery?

According to AMBCrypto, Virtual Protocol is experiencing significant selling pressure as whales exit the market. Meanwhile, retail investors are entering to defend recent gains, placing VIRTUAL at a crucial decision-making point. Currently, VIRTUAL is testing vital support at $1.45, where the middle Bollinger Band is positioned. If retail traders can maintain this support, it could confirm a bullish retest and strengthen the altcoin for potential growth.

Virtual FBB

If this support holds, a bounce back toward $1.75 to $2 may be possible. On the other hand, if sellers break through the $1.45 support, VIRTUAL could drop to $1.10.