Virtuals Protocol (VIRTUAL) has supported recent price performance by attracting steady capital inflows.
Price and Trading Volume rose together, with volume rising over 121% to $82 million. This combination resulted in stronger market participation and greater earnings potential.
Market data also showed that the number of owners had reached 1.11 million at the time of publication. However, the data did not reveal that holder growth directly increased the price.
It remains unclear whether the rally can continue. Indicators have shown that the bulls are gaining momentum, but some risks are challenging the strength of this move.
Can VIRTUAL extend its rally?
The Liquidation Heat Map showed fairly large liquidation clusters on both sides of the VIRTUAL price. But the clusters above the price appeared larger, giving the bulls a slight advantage.
These clusters represent areas where leveraged positions could face liquidation if the price reaches them. Such liquidity concentrations can impact prices as traders and market makers target these levels.
With momentum already trending upward, VIRTUAL could extend its rise into the largest overall liquidity cluster.
Despite this, liquidation activity showed an unequal rather than balanced division. Short positions recorded liquidations of $50,220, while long positions lost $22,760 in 24 hours. Higher short liquidations supported the bullish move, but clusters below the price maintained downside risk.
Are vendors blocking the rally?
The persistent market registered stronger selling pressure and created resistance to a clean recovery.
At the time of writing, VIRTUAL’s Buyer Bid/Ask Ratio was at 0.94. A reading below one indicated buyer selling volume exceeded buyer buying volume.
However, VIRTUAL remained robust as buyers remained active on high-volume exchanges including Binance and Bybit.
Binance had the largest share in VIRTUAL’s Trading Volume. Order flow may therefore have a stronger impact on short-term price direction.
The Funding Rate also remained positive at 0.0049%, meaning long investors are paying out short investors. While this did not confirm that buyers controlled most of the Open Interest, it did suggest bullish positioning.
Does the protocol activity maintain the tempo?
Protocol usage presented a more cautious picture as activity failed to match VIRTUAL’s price rise. Artemis recorded 1,000 Daily Active UsersIt’s down from about 2,000 on July 10.
Meanwhile, DefiLlama reported over $129,000 in Fees. If user activity remains weak, it could strain VIRTUAL’s ability to sustain its rise.
Final Summary
- VIRTUAL’s rally has been fueled by increased Trading Volume, holder growth and bullish positioning.
- Decline in Daily Active Users revealed the gap between market momentum and protocol demand.
