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Is Virtual’s Price Decline a Buying Opportunity?
Virtual Protocol is currently in the midst of a price decline, with a 14.55% daily drop and trading at $2.19. In the past 24 hours, the token has been highly volatile, swinging between a low of $2.15 and a high of $2.72. Just three days ago, Virtual’s value reached an all-time high of $3.29, but it has since dropped by 32.06%, signaling a correction within the market.
As the price continues to plummet, its trading volume has also shrunk significantly, decreasing by 25.78%. Additionally, its market capitalization is now at $2.19 billion. These figures suggest that the cryptocurrency is under immense pressure but also demonstrate the unwavering dedication of traders in this niche.
The retesting of critical levels is possible
The Virtual cryptocurrency appears to be correcting lower levels following recent highs and is correlated with the $1.815 level in consolidation. This zone aligns with the prior breakout area, a crucial support point where buyers could accumulate positions. If an 18% decline brings early breakout buyers out, a potential recovery may ensue for the cryptocurrency. Put simply, if Virtual’s price drops to $1.815, it is likely to see a bullish reversal towards $4 in the medium term.
The accumulation phase typically precedes a market formation where prices pause before resuming an upward trend. This level holds significant importance as the future direction of the token will be determined from here.
Indicators indicate stabilization and reversal potential
Several key indicators suggest that Virtual Protocol is heading towards consolidation before its next major price move. The Ichimoku Cloud analysis shows that the price has been pinned against its lower boundary and is supported below $2.24, which aligns with the Kijun-Sen, a significant level that usually represents equilibrium and stabilization.
Currently, the reading of 21.39 reveals an oversold situation, indicating a flattening of bearish momentum and potentially paving the way for a rebound. Furthermore, the Average Directional Index’s current reading of 29.77 suggests that downtrend strength is dwindling.
A breakout will only be confirmed once Virtual Protocol’s price surpasses $2.62, the next resistance level.
Liquidation Heatmap: Key levels to watch
According to Coinglass, significant liquidation activity has been observed in Virtual Protocol’s Binance USDT pairs. The liquidation zones at $2.7 and $2.5 were seen to clear 237.29K USDT in leverage, indicating that traders are becoming increasingly overleveraged as prices fall. This phenomenon manifests as a cascading effect of liquidations as prices continue to decline.
Conversely, the lack of activity around $2.1 suggests growing support for Virtual Protocol as traders become accustomed to a lower price zone. Conversely, the heavier liquidation zones at $2.5 may pose resistance if the cryptocurrency attempts to recover.
In conclusion, while Virtual Protocol’s recent price drop may be unsettling for some investors, it presents an attractive buying opportunity for those who are willing to take on calculated risk. The accumulation phase is likely to precede a market formation where prices pause before resuming an upward trend. Therefore, traders should closely monitor key levels and indicators to make informed investment decisions.
In the context of this analysis, potential investors may find solace in the fact that a recovery towards $4 is plausible if Virtual Protocol’s price can break through the critical $1.815 level.
Source: www.cryptonewsz.com
