VIRTUAL weakens around important support - Will a sell-off follow?

Cryptocurrency-related coins (AI) continue to plunge in a selling wave, as traders remain patient waiting for a bullish reversal in the near future.

In this context, Virtuals Protocol (VIRTUAL) recorded a decline of over 10% within 24 hours at the time of writing. This development clearly reflects simultaneous weakening of technical signals and network activity levels.

Notably, VIRTUAL is currently the fifth-largest decline among the top 100 cryptocurrencies by market cap, with a weekly adjustment reaching 16%, indicating that selling pressure still dominates the market.

VIRTUAL Price Analysis: Will Selling Pressure Continue?

The price chart shows that VIRTUAL has officially entered a persistent downtrend since 11/1. This correction follows a short technical rebound, occurring about ten days after the sharp plunge on 10/10, but quickly failed to reverse the overall trend.

According to DyorNetCrypto, the trend indicator for this altcoin remains clearly negative, supported by a series of unfavorable technical signals.

At the time of writing, both the 10-day and 25-day simple moving averages (SMA) are trending downward, while the price continues to trade below these levels. MACD bars have turned red, reflecting an increasingly clear bearish structure, and the OBV indicator has fallen into negative territory around -1.55 million USD, indicating significant weakening of capital flow.

Moreover, Virtual Protocol remains below the SuperTrend line and beneath the Ichimoku Cloud — two indicators often regarded as “trend shields,” reaffirming that selling pressure still holds the upper hand in the market.

Source: TradingViewIn terms of price pattern, VIRTUAL is entering a tightly compressed accumulation phase, implying the potential for a strong volatility spike or trend reversal in the near future. However, a deep decline below the 0.70 USD level is not necessarily inevitable. The RSI indicator has entered oversold territory, opening room for a short-term technical rebound.

However, in a negative scenario, if this support level is broken, selling pressure is likely to intensify significantly. Notably, this development also coincides with a decline in network activity, increasing short-term risks for VIRTUAL’s outlook.

Network Activity Is Also Declining

Network activity shows clear signs of weakening, as several key metrics such as trading volume, liquidity, fee revenue, and holder count all decline simultaneously.

According to CoinMarketCap data, the number of holders has decreased over the past week, now only about 1.03 million at the time of writing. This pressure is more evident in trading volume: since early November, the trading value of the VIRTUAL token has plummeted from approximately 1 billion USD to around 80 million USD — a reduction of over 10 times. Meanwhile, liquidity has also decreased but to a lesser extent, down about 50% to 13 million USD.

Source: CoinMarketCapNot only market indicators, but fee revenue across the entire ecosystem has also continuously declined over the last three quarters. After launch, quarterly revenue peaked at 20 million USD, but then gradually decreased and now stands at only 8.51 million USD, reflecting a prolonged network activity slowdown.

Can VIRTUAL Bounce Back from the 0.70 USD Level?

Although most technical indicators and on-chain data still reflect a weak price trend, the liquidity heatmap reveals a more optimistic picture.

The market structure is gradually stabilizing around the 0.70 USD zone — an area with dense liquidity. Notably, each time the price approaches this level, a clear reaction occurs, suggesting it could be an activation zone for a significant rebound.

Source: CoinGlass Conversely, above the 0.72 USD threshold, new liquidity clusters are forming. As the price begins to recover, these clusters are likely to act as “price magnets,” creating upward pull for VIRTUAL.

Based on daily data, the largest liquidity zone currently concentrates around the 0.80 USD mark, making it a potential target in an upward scenario.

Interestingly, VIRTUAL is now “sandwiched” between two important liquidity zones, while the price momentum shows signs of leaning positive. However, continued liquidity accumulation around the 0.70 USD level could act as a resistance, limiting short-term gains.