- VIRTUAL bulls failed to defend $2.4 and faced rejection during an attempted reclamation.
- The short-term spot demand was encouraging but might be insufficient to turn the bearish tides
Virtuals Protocol [VIRTUAL] saw a 37.2% rally on Friday the 31st of January. This move was quickly undone, as Bitcoin [BTC] reversed from $106k and was trading at $99.4k at press time.
The high inflows of VIRTUAL into exchanges noted recently was a sign of a sell-off. The $2.5 resistance zone wasn’t overcome, and the short liquidations above this resistance zone were swept, paving the way for new lows.
Is VIRTUAL about to turn a corner?
Source: VIRTUAL/USDT on TradingView
The price action indicated a strong downtrend on the daily timeframe. This has been persistent in the second half of January, when a bullish reaction from the 78.6% Fibonacci retracement level was quickly retraced.
The ATR noted high volatility in the past two weeks, accompanied by significant capital flow out of the market according to the CMF.
The shooting star candlestick and the high trading volume on the 31st of January underlined bearish dominance.
This came after the failure of the $2.67 and $2.4 former support zones. Overall, they indicated that VIRTUAL is headed lower. To the south, the 23.6% retracement level at $1.25 was the next target.
Source: Coinalyze
While the daily timeframe reflected bearish pressure, the lower timeframe data signaled a momentum reversal could be around the corner. The Open Interest has begun to pick up in recent hours, breaking the downtrend.
Read Virtuals Protocol [VIRTUAL] Price Prediction 2025-26
The spot CVD saw a swift increase over the past 24 hours to indicate heightened spot demand.
The Funding Rate, which had been negative over the past 24 hours, climbed into positive territory and was indicated a short-term sentiment shift.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
