Virtual Protocol Whale Dumps 7.9 Million Tokens – What’s Next for VIRTUAL Price?
A major holder of Virtual Protocol (VIRTUAL), often referred to as a whale, has offloaded a staggering 7.958 million tokens, valued at approximately $13.45 million. This large-scale move has intensified existing selling pressure, leading to further instability in the altcoin’s market performance.
VIRTUAL Faces Intensified Bearish Momentum
Over the past several days, VIRTUAL has experienced a notable downturn. After peaking at $1.80, the token has endured a two-day slide, now trading around $1.52 — a decline of over 13% in just 24 hours. This drop has coincided with an increase in whale activity, particularly involving large transfers to exchanges, often a precursor to mass sell-offs.
Data from blockchain analytics platform EmberCN revealed that the aforementioned whale moved their tokens to crypto firm Teneo. This entity is known for processing large-scale transactions, likely indicating the whale’s intent to liquidate a portion, if not all, of their holdings. Historical data shows that this whale tends to distribute tokens in multiple batches, a pattern consistent with their most recent behavior.
Whale Liquidation: $40M+ in Realized Gains
The whale in question had amassed these tokens back in December 2023. Since then, they have entirely exited their VIRTUAL position, having cumulatively transferred 26.42 million tokens — a move that generated an estimated $40.83 million in profits. Such behavior typically signals a lack of confidence in the asset’s short-term prospects and contributes to bearish sentiment across the market.
Large sell-offs by whales during periods of declining prices can exacerbate downward momentum. When significant amounts of tokens are dumped into the market, supply surges while buying demand often wanes. This imbalance not only weakens support levels but also shakes the confidence of smaller investors, increasing the likelihood of retail panic selling.
Futures Market: Whales Shift Strategy Amid Volatility
Interestingly, while spot market sentiment remains bearish, whale activity in the derivatives space has surged. According to CryptoQuant’s Futures Average Order Size metric, whales have ramped up their exposure in the Futures market, suggesting a shift in strategy. These investors appear to be hedging potential losses or speculating on further declines through leveraged instruments.
This increased presence in Futures typically suggests expectations of heightened volatility or continued price deterioration. By using Futures, whales can maintain exposure to VIRTUAL while protecting their downside risk or even profiting from the ongoing correction.
Retail Traders Step In as Market Support
Despite the bearish signals from whale behavior, retail traders have shown resilience. On-chain indicators highlight a consistent pattern of accumulation from smaller investors. The Spot Taker Cumulative Volume Delta (CVD) has remained positive and on an upward trajectory, indicating that buying activity on the spot market is outpacing selling pressure.
Additionally, Spot Netflow — which measures the net movement of tokens into and out of exchanges — has been negative for five consecutive days. A negative netflow of -$3.2 million, the lowest month-to-date, suggests that more tokens are being withdrawn from exchanges than deposited, a bullish signal that typically reflects investor accumulation and long-term holding intent.
Key Support Levels Under Threat
Currently, VIRTUAL is hovering near a critical support level at $1.45, which aligns with the mid-band of the Bollinger Bands — a widely used technical indicator. Holding this level could serve as a springboard for a potential recovery. Should the support hold, analysts suggest a possibility of a rebound toward the $1.75–$2.00 range.
However, if bearish pressure persists and this support is broken, the next significant level lies around $1.10. A drop to this price would represent a substantial retracement and could trigger further downside as confidence erodes further.
Is a Rebound Possible?
While current market conditions remain uncertain, all is not lost for Virtual Protocol. The dedication of retail investors, evident through steady accumulation and negative exchange netflows, offers a glimmer of hope for a reversal. If these traders continue to absorb selling pressure and key support levels hold, a recovery could materialize sooner than expected.
Moreover, if whale activity in Futures settles or transitions back to accumulation, it would further strengthen bullish sentiment. A reduction in large-scale sell-offs would stabilize supply dynamics, allowing demand to recover and potentially drive prices back into an uptrend.
What Could Influence the Next Price Move?
Several factors will determine VIRTUAL’s short-term direction:
1. Market Sentiment: A shift in broader crypto sentiment could either accelerate the downturn or provide relief. A Bitcoin rally, for instance, might lift altcoins like VIRTUAL.
2. Macro Environment: Interest rate decisions, regulatory news, or macroeconomic data could impact investor appetite for risk assets, including altcoins.
3. On-Chain Activity: Continued tracking of wallet movements, especially from whales, will be critical. A halt in sell-offs would be a positive sign.
4. Technical Indicators: Watching for oversold signals on RSI (Relative Strength Index) or bullish divergences could offer clues about potential price reversals.
5. Project Developments: Any announcements from the Virtual Protocol team — upgrades, partnerships, or token burns — could influence investor sentiment and price action.
Retail vs. Whale: Who Wins the Tug-of-War?
The current dynamics of VIRTUAL resemble a tug-of-war between retail optimism and whale caution. While large holders have exited en masse, retail participants are attempting to hold the line. Whether this grassroots support will be enough to counterbalance the sell-side pressure remains to be seen.
As of now, the market stands at a crossroads. The coming days will be crucial in determining whether VIRTUAL can regain its footing or if further declines are inevitable.
Final Thoughts
Virtual Protocol is currently navigating a turbulent period marked by heavy whale selling and heightened market anxiety. However, the steadfastness of retail investors and key support levels offer potential lifelines. Investors should remain cautious, monitor whale behavior closely, and pay attention to both technical and macro signals before making decisions.
While the current trend is bearish, the crypto market’s inherent volatility means reversals can happen quickly. The next few trading sessions may provide a clearer picture of whether VIRTUAL is poised for a recovery — or facing further descent.