Key Takeaways
What’s driving VIRTUAL’s recent gains?
Liquidity inflows from both spot and perpetual investors, with Open Interest rising by $28.4M and spot purchases hitting a daily high of $1.11M, boosted VIRTUAL’s price by 10%.
What resistance could halt the rally?
VIRTUAL faces a major supply order block between $1.38 and $1.41, which previously caused a 16% drawdown, posing a risk of a drop toward $1.20.
Virtual Protocol [VIRTUAL], one of the leading memecoins in the market, has posted a 10% gain in the past 24 hours.
This positive performance now places it in the second-to-last position on the Altcoins 90-Day Index, just above Pi Coin [PI], which has recorded a cumulative loss of 22.54%.
Analysis indicates that VIRTUAL remains at a crossroads, one that will determine whether its recent rally is short-term or long-term.
AMBCrypto’s review examined the data more closely to uncover what direction the asset is likely to take.
VIRTUAL sees liquidity gains
Perpetual investors have placed the highest bets on the memecoin in the past day. This was confirmed by Open Interest, a metric used to track unsettled perpetual contracts in the market.
According to CoinGlass data, Open Interest rose by $28.4 million in the past 24 hours, aligning with the price surge—an indication of stronger buying activity.
Source: CoinGlass
Spot market investors have also been purchasing the asset, although at a slower pace. In the past day, spot inflows totaled $1.11 million.
So far this week, investors in the spot market have spent $1.96 million on VIRTUAL. The most recent daily purchase represents the largest buy so far, showcasing a notable increase in investor appetite for the memecoin.
Bullish on-chain activity
On-chain activity has largely aligned with the bullish outlook for the asset. At the time of reporting, Spot Daily Active Users climbed to 5,900.
This upward trend implies that more trading activities are happening on-chain, which suggests that more buyers are accumulating the asset in line with its broader price movement.
Source: Artemis
This surge in users is particularly important as it comes amid an increase in the asset’s circulating supply. According to the latest data from Artemis, circulating supply rose to 655.6 million in the past day.
Typically, a rise in supply tends to exert downward pressure on price. However, in this case, the data shows that demand has been strong enough to outweigh the increase in supply, keeping VIRTUAL’s price on the upside.
Major supply hurdle ahead
Despite the bullish momentum, VIRTUAL is set to face a significant hurdle on the chart.
Chart patterns indicate that the token has entered an order block zone, a level known to act as supply resistance and force prices lower.
Source: TradingView
The last time VIRTUAL traded into this zone, it experienced a drawdown of about 16%. The token is now within this same range, between $1.38 and $1.41.
If selling pressure continues to mount at this level, VIRTUAL could record a double-digit loss, falling back toward the $1.20 region on the chart.
