After a 237% Rally, Virtual Protocol [VIRTUAL] Enters a Corrective Phase

Following a 237% rally in the past month, Virtuals Protocol [VIRTUAL] has entered a corrective phase, declining 13% on the weekly timeframe and 2.3%

Following a 237% rally in the past month, Virtuals Protocol [VIRTUAL] has entered a corrective phase, declining 13% on the weekly timeframe and 2.3% on the daily. Despite this pullback, VIRTUAL is being accumulated across the board, indicating that the market remains broadly bullish. Here’s how.

Smart money acquires more VIRTUAL

Recent analysis on Nansen revealed that VIRTUAL has become the go-to AI token for smart money. These wallets—known for high-return strategies—have been quietly building positions.

As of Monday, 112 smart money wallets hold VIRTUAL, nearly as many as the next three most-held tokens—which have 114 holders in total. These 112 wallets now hold $15.92 million of the asset. This level of participation and volume suggests strong conviction in the asset’s rally potential.

Market traders align with smart money

While smart money is holding VIRTUAL, bullish interest is also building across spot and derivative markets.

In the last 72 hours, the spot market recorded $5.71 million in buys, with much of it being moved off exchanges—mirroring smart money behavior.

Meanwhile, in the derivative market, we’re seeing more long positions.

The Open Interest Weighted Funding Rate—which combines Open Interest and Funding Rate to forecast market direction—has remained positive, even as the market price declines.

A positive reading implies that most unsettled derivative contracts, currently at $205.05 million, are from long traders.

When the derivative market tilts in favor of buyers, alongside steady accumulation in the spot market, it typically supports a positive price move.

A rebound is near — Chart reveals

The Bollinger Bands (BB), used to predict potential resistance and support based on price placement, suggest a relief bounce may be near.

On the 1-day chart, the price is approaching the mid-level band, around $1.70. This level could act as potential support and push the price higher. The short-term target for this rally is $2.26, with a long-term target above $5.

On top of that, the Accumulation/Distribution (A/D) indicator has turned slightly upward—an early sign of renewed buying interest.

However, it remains in negative territory, suggesting not all investors are convinced yet.

Still, a sustained price bounce could push the A/D indicator back into bullish terrain, reinforcing VIRTUAL’s long-term upside.