Significant Drop in Virtual's Shares by 12% After $1 Million in Capital Withdrawals - Can the Bulls Regain Control?
In the world of cryptocurrencies, VIRTUAL is currently experiencing a challenging period. According to the Altcoin Season Index, VIRTUAL is among the worst-performing altcoins, with a 28% decline. This decline is further evident in the past 24 hours, where VIRTUAL has seen a significant price drop of 12%.
The negative sentiment in the market has caused liquidity to move away from exchanges where VIRTUAL is traded. In the past 48 hours, there have been approximately $1 million in outflows from spot market investors for VIRTUAL. This trend suggests traders are preferring other VIRTUAL trading pairs for long-term profitability.
The continued selling in both derivatives and spot markets has led to a price drop of about 24% recently. The selling pressure in the spot market is also contributing to the overall downward trend of VIRTUAL. The latest drop in VIRTUAL's price has caused it to fall to a key support level at $1.16.
The Volume-based Weighted Funding Rate has also turned negative, suggesting weakening bullish momentum and a strengthening grip by bears. This negative OI-Weighted Funding rate indicates that bearish positions now dominate open contracts in the derivative market. The Funding Rates for the top three centralized exchanges (Binance, Bybit, and OKX) have fallen to 49.1%, 28.0%, and 26.1% respectively, with the derivative market sentiment turning fully bearish.
Despite earlier strong gains, AI-related tokens like VIRTUAL have suffered a 51% drop over 90 days amid general AI sector instability and risk-off macro rotations favoring Bitcoin dominance. Additionally, recent protocol upgrades introduced higher staking tiers and allocated 15% of supply to liquidity and incentives, up from prior 10%. While this aims to attract long-term holders, it temporarily increases circulating supply, causing short-term sell pressure.
Analysts widely expect continued price declines in the near term, with predictions ranging from lows around $0.89 to $1.16 by August–September 2025, marking a contraction from recent highs. The outlook hinges on adoption milestones—specifically, the launch and growth of VIRTUAL’s AI DApp in late August 2025, plus staking reforms potentially encouraging holding and reducing sell pressure. If the protocol gains traction in gaming and virtual interactions, and veVIRTUAL lock-ups increase, demand could revive and reverse bearish trends.
However, it's important to note that no significant support remains to cushion further losses if there is a break below the $1.16 support level. These trends in the derivative market suggest investors see little potential for a price rally, with bearish positioning proving more profitable.
This information is reported by Arkham Intelligence and TradingView.
Investors are preferring to trade different VIRTUAL trading pairs due to the negative sentiment in the market, causing liquidity to move away from exchanges where VIRTUAL is traded. The selling pressure in the spot market, combined with the negative sentiment, has led to a significant price drop of 12% for VIRTUAL in the past 24 hours. This challenging period for VIRTUAL has also caused it to suffer a 51% drop over 90 days, with bearish positions dominating open contracts in the derivative market. Analysts predict continued price declines in the near term, with potential lows around $0.89 to $1.16 by August–September 2025.
