VIRTUAL’s $4 Million Outflow: Is the Rally a Hoax?

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In the last 24 hours, the digital token associated with Virtuals Protocol, a system that allows developers to build and profit from artificial intelligence agents, has surged by 29%, making it the top performer in the market.

As a crypto investor, I’ve noticed a surge in prices, but the substantial withdrawals from the DIGITAL trading spot suggest that this rise might be fueled by speculation rather than genuine interest. This makes me question whether this upward trend can endure, casting doubts on its longevity.

VIRTUAL Spot Outflows Signal Low Buying Activity

At present, VIRTUAL is valued at $3.82. In the last 24 hours, its value increased by 29%, placing it above many other cryptocurrencies in the top 100 ranked by market cap.

Over the last two days, continuous withdrawals totaling $4 million from VIRTUAL’s spot market have sparked worries due to signs of sell-offs, as reported by Coinglass.

If an asset’s price rises yet there are outflows at the same time, it could imply that while the asset’s worth on the market is growing, investors might be selling off or withdrawing the asset. This could suggest a sense of caution or lack of confidence among some investors, as they may be choosing to cash out their profits.

A smaller pool of investors appears to be driving the rise in VIRTUAL’s price, as broader market involvement seems to be minimal, suggesting speculative trading.

The drop in Virtual’s Chaikin Money Flow (CMF) supports the negative perspective. Currently, its CMF is moving downwards and seems likely to dip beneath the zero mark.

If a security’s price increases but its Current Market Factor (CMF) decreases, it suggests that robust buying pressure might not be sustaining the price rise. This could mean that the surge is primarily due to temporary factors and not lasting demand, potentially signaling a possibility of a reversal or softening in the price trajectory.

VIRTUAL Price Prediction: Falling Demand Challenges Price Recovery

According to the data provided by VIRTUAL’s Fibonacci Retracement tool, the current trading price is lower than its record high of $5.25, indicating a significant barrier or hurdle for further upward movement in price.

Despite a potential decrease in the token’s popularity, reaching the previous high price might prove challenging. If market sell-offs for VIRTUAL intensify, its value could plummet to $2.25 – a level that offers strong support.

Conversely, should interest in the VIRTUAL token revive, its value might return to its peak historical level and strive to surpass it further.

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2025-01-16 18:06