Amidst broader market turbulence, Virtual Protocol (VIRTUAL) recently experienced an 11% price decline, pushing its token into a critical demand zone. While the crypto arena grapples with global geopolitical pressures, a closer look at VIRTUAL's on-chain and technical indicators suggests this downturn might be presenting an unexpected opportunity for accumulation rather than sustained bearish momentum.
Price Action and Emerging Support
The recent price drop has guided VIRTUAL to a significant demand zone around $0.6240, a level historically associated with strong buyer interest and price rejections. This area is now seen as a potential magnet for new investments as selling pressure begins to wane, hinting at a possible stabilization or reversal in the near future.
Technical Signals Hint at Reversal
Further bolstering the case for a potential recovery, key technical indicators point towards seller exhaustion. VIRTUAL's Stochastic RSI has entered oversold territory on the daily chart, typically signaling that selling pressure is losing steam. Concurrently, the MVRV Z-score, sitting at 0.321, indicates that VIRTUAL is currently undervalued, historically aligning with periods of accumulation and presenting an attractive entry point for investors.
On-Chain Data Reinforces Accumulation
On-chain metrics provide additional evidence supporting an accumulation phase. A noticeable reduction in withdrawing addresses suggests that investors and long-term holders may be strategically repositioning, anticipating future price rallies rather than exiting the market. Moreover, the 90-day dormant circulation has fallen to its lowest level, meaning older tokens remain inactive. This low dormant circulation significantly reduces the risk of sudden sell-offs from long-term holders, reinforcing the view that the current market pullback for VIRTUAL is an accumulation opportunity.
