Virtuals Protocol (VIRTUAL) recently experienced a notable short-term price increase, sparking speculation among investors. However, a deeper dive into the market data reveals a complex picture of conflicting signals, suggesting that while immediate upward momentum exists, the underlying long-term trend remains bearish, prompting caution for potential traders.
Conflicting Market Signals Emerge
Despite a 3.63% rise in VIRTUAL over 24 hours and a significant 10.82% jump in Open Interest, indicating strong short-term speculative interest, the token faces crucial headwinds. Analysis shows a sinking spot CVD (Cumulative Volume Delta) and a general lack of spot demand, which could undermine the sustainability of the current rally. This discrepancy between speculative activity and actual buying interest in the spot market suggests that the recent upward movement might be fragile and susceptible to a quick reversal.
Bearish Long-Term Outlook with Short-Term Potential
The broader market context for VIRTUAL remains predominantly bearish, with the longer-term trend and swing structure consistently showing negative momentum. While an internal structure shift, marked by a move beyond the $0.679 local high, has fueled a recent bounce from a short-term demand zone around $0.062, key indicators suggest this upward pressure lacks conviction. The On-Balance Volume (OBV) has failed to establish new highs, and daily trading volume has consistently remained below its 20-day moving average throughout February, casting shadows on the strength of the recovery. Although the MACD shows some upward momentum, it stays below the zero line, confirming the prevailing bearish sentiment. Analysts project that this current bounce could potentially extend towards the $1 mark, a significant local resistance and psychological threshold. However, given the overarching bearish trajectory and the weak supporting volume, swing traders are advised to exercise prudence and remain on the sidelines. A sustained move past $0.699 could pave the way for targets at $0.82 and $1, but the current market structure demands a cautious approach, prioritizing improved volume trends before considering long positions.
