The token for Virtual Protocol, VIRTUAL, fell 11% amid broader crypto market declines linked to geopolitical unrest, dropping to a key demand zone near $0.62. Technical indicators suggest selling pressure is fading, with the Stochastic RSI in oversold territory. On-chain data reveals low dormant circulation and a reduction in withdrawing addresses, potentially signaling an accumulation phase as the token appears undervalued.
The price of Virtual Protocol‘s VIRTUAL token declined by 11% recently as the wider cryptocurrency market faced pressure from global geopolitical and policy concerns. This drop pushed VIRTUAL into a critical demand zone near $0.6240, a level that has historically initiated several rejections.
Momentum indicators hint at seller exhaustion, with VIRTUAL’s Stochastic RSI on the daily chart now in oversold territory. This shift often precedes short-term stabilization, especially near well-defined demand zones. Valuation metrics also flash early recovery signals, as the MVRV Z-score of 0.321 places VIRTUAL in an undervalued region.
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.
Supporting the accumulation case, VIRTUAL’s 90-day dormant circulation has fallen to 25k, its lowest level. 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.
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, as buyers must hold current levels and push the price above short-term resistance. Until then, volatility is expected as the market tests whether this correction will be an accumulation or just another pause before bearish continuation.
