Virtuals Protocol has experienced a staggering 90% rise in price over the last week due to increased whale activity and large trade in spot and future markets. The aggressive price action is drawing investor interest and raising fear that it may prove unsustainable in the longer term.
Whale Activity Drives the Rally
The recent surge in Virtuals Protocol price is largely attributed to increasing whale activity. Large trades have exploded, an indication of large-capital investors buying into VIRTUAL tokens. This accumulation period is normally a precursor to widespread rallies in the market, according to analysts monitoring trading volumes.
In spite of an 8% retracement, Virtuals Protocol now trades at approximately $1.40. The continued dominance of buyers, particularly within the futures marketplace, is not in line with tapering buying activity within the spot marketplace. If that’s the case, it could find even more bullish momentum for Virtuals Protocol.
Market Sentiment and Dynamics
The OKX listing of $VIRTUAL has also been boosted by investor demand. OKX has indicated that VIRTUAL would be paired with Tether (USDT), opening new paths for liquidity and trading. The listing is a strong indication of increasing confidence in the asset.
Investor mood is optimistic but cautiously optimistic. As whale activity stabilizes and big player interest builds up, the chances for higher price appreciation grow better. Analysts predict that if spot market transactions start coming back in accordance with robust futures market performance, Virtuals Protocol can keep climbing.
Future Outlook: A Bullish Shift
Technical levels are bearish-looking for Virtuals Protocol. The price has only just broken above the important resistance level of $1.4191, after a very extended consolidation period. This breakout points to the token potentially looking for higher gains.
CryptoQuant analysis suggests a price difference between $1.0177 and $1.2030 that can act as strategic points of re-entry for long-term investors during any pullbacks. With more spot market volume owing to the prolonged supremacy of the buyers, this can help sustain the uptrend.
Investors should be careful to watch out for these support levels and modify their strategies as and when necessary.
