Virtuals Protocol [VIRTUAL] attracted steady capital inflows, supporting its recent price performance.
Price and Trading Volume rose together, with volume climbing over 121% to $82 million. This combination suggested stronger market participation and potential for further gains.
Market data also showed the holder count reaching 1.11 million at press time. However, the data did not establish that holder growth directly drove the price higher.
Whether the rally can continue remains uncertain. Indicators showed bulls gaining momentum, but several risks challenged the strength of the move.
Can VIRTUAL extend its rally?
The Liquidation Heatmap showed sizeable liquidation clusters on both sides of VIRTUAL’s price. However, the clusters above the price appeared larger, giving bulls a slight edge.
These clusters represent areas where leveraged positions could face liquidation if the price reaches them. Such liquidity concentrations can attract price as traders and market makers target those levels.
With momentum already leaning bullish, VIRTUAL could extend its rally toward the largest overhead liquidity cluster.
Even so, liquidation activity showed an uneven rather than balanced split. Shorts recorded $50,220 in liquidations, while longs lost $22,760 over 24 hours. Higher short liquidations supported the bullish move, although clusters below the price preserved downside risk.
Are sellers blocking the rally?
The perpetual market recorded stronger selling pressure, creating resistance against a clean rally.
At press time, VIRTUAL’s Taker Buy/Sell Ratio stood at 0.94. A reading below one indicated that taker selling volume exceeded taker buying volume.
However, VIRTUAL held firm as buyers remained active on high-volume exchanges, including Binance and Bybit.
Binance accounted for the largest share of VIRTUAL’s Trading Volume. Therefore, its order flow could have a stronger influence on short-term price direction.
The Funding Rate also remained positive at 0.0049%, meaning long traders paid short traders. This suggested bullish positioning, although it did not confirm that buyers controlled most Open Interest.
Is protocol activity keeping pace?
Protocol usage presented a more cautious picture because activity failed to match VIRTUAL’s price rally. Artemis recorded 1,000 Daily Active Users, down from nearly 2,000 on the 10th of July.
Meanwhile, DefiLlama reported over $129,000 in Fees. If user activity remains weak, it could challenge VIRTUAL’s ability to sustain its rally.
Final Summary
- VIRTUAL’s rally gained support from rising Trading Volume, holder growth and bullish positioning.
- Falling Daily Active Users exposed a gap between market momentum and protocol demand.