VIRTUAL bulls drive 12% gain, yet spot flashes warning signs!

Key Takeaways

VIRTUAL gained 12% to $1.32 with Derivatives support and $234k revenue growth. Could $3.79 million in spot outflows and fading sentiment outweigh bullish momentum?

Virtual Protocol [VIRTUAL] continued its strong performance in the past day, gaining over 12% to reach a press-time value of $1.31.

Market analysis showed that the altcoin’s high utility, combined with investors’ bullish alignment in the Derivatives market, could be the reason for its upward trajectory.

However, not all market segments are in agreement, leaving room for a potential price decline.

So, here’s what to expect from VIRTUAL!

VIRTUAL investors show bullish conviction

Protocol revenues surged, with fees and revenue hitting $234,000 on the 8th of September, their highest in two days, per DeFiLlama.

Source: DeFiLlama

Other market segments, and particularly Derivatives investors, aligned with the upward move and fueled the rally.

Analysis of the Open Interest Weighted Funding Rate, a key metric for identifying whether funding in the Derivatives market comes from bulls or bears, offered confirmation.

At press time, the Open Interest Weighted Funding Rate on CoinGlass remained positive over the past day, with a reading of 0.0060%.

Source: CoinGlass

That alignment helped VIRTUAL attract momentum, with Derivatives positioning amplifying the spot move higher.

Spot market moves against the trend

Surprisingly, the group of Spot investors opposed the bullish outlook, as they placed bets on a price decline instead of a rally.

Over the past two days, Spot investors sold $3.79 million worth of VIRTUAL across multiple centralized exchanges.

In fact, the sell-off in the past 24 hours has been the most intense, totaling $2.7 million and signaling clear bearish conviction.

Source: CoinGlass

At the same time, bullish participation has weakened.

Data from Community Sentiment shows a sharp decline in investor optimism, dropping from 94% on the 8th of September to 71% at press time, a loss of more than 22% in bullish investors.

If sentiment continues to fall, VIRTUAL’s recent gains could be inflated, and a price correction is likely in the coming days.

Chart suggests a key resistance zone

TradingView data showed VIRTUAL testing $1.32 twice in 12 hours, both rejected. So it appeared to highlight a strong selling pressure.

Source: TradingView

This level has previously triggered two sharp declines, each resulting in losses of at least 12%. The pattern suggests a possible repeat of the downward move.

However, if bulls continue to strengthen their position, VIRTUAL could push past the resistance and target the next key level at $1.48.