Prices in the crypto arena dropped sharply as the market took a hit due to the current global geopolitical unrest and policy. Inasmuch, Virtual Protocol’s [VIRTUAL] price shrunk by 11% recently.
At press time, the price move had pushed the token into a critical demand zone near $0.6240.
This level had previously initiated several rejections and could attract more buyers in the near future as they look forward to investing in the recent dip as selling pressure cools.
Momentum indicators hint at seller exhaustion
Coming in defense of the $0.6240 demand zone, technical indicators also suggest a fading bearish momentum.
VIRTUAL’s Stochastic RSI on the daily chart is in an oversold territory, signaling a fading selling pressure rather than aggressive continuation.
This shift often precedes short-term stabilization, especially near well-defined demand zones.
At the same time, valuation metrics are flashing early recovery signals. The MVRV Z-score sits at 0.321, placing VIRTUAL in an undervalued region.
Historically, such levels have aligned with accumulation phases rather than sustained downtrends.
The current undervalued price presents a buying opportunity for prospective buyers, a positive sentiment that could shift the market dynamics in the current demand zone.
Tactical repositioning?
Consequently, the number of withdrawing addresses has reduced significantly recently.
The reduction points to a tactical realignment of investors and long-term holders as they anticipate a further price rally after the potential rally at the current demand zone.
Dormant circulation strengthens the accumulation case
That’s not all; VIRTUAL’s dormant circulation has fallen to its lowest level – the 90-day dormant circulation was at 25k at press time.
The older tokens remained largely inactive, reducing the likelihood of sudden sell pressure from long-term holders.
Low dormant circulation typically reinforces accumulation phases, especially during market pullbacks. The same trajectory is coming into play on the Virtual Protocol.
What this means for VIRTUAL
Taken together, VIRTUAL’s price reaction at the $0.6240 demand zone, weakening selling momentum, and supportive on-chain metrics all reinforce the likelihood of a near-term reversal.
However, confirmation remains key. VIRTUAL buyers must hold current levels and push price above short-term resistance to confirm a recovery.
Until then, volatility is expected as the market tests whether this correction will be an accumulation or just another pause before bearish continuation.
Final Thoughts
- VIRTUAL’s drop has pushed its price into a historically strong demand zone near $0.6240.
- Stochastic RSI and MVRV Z-score suggest selling momentum is fading, raising reversal prospects.
