VIRTUAL Takes a 13% Hit—Why Traders Are Still Buying the Dip

Another day, another crypto correction—VIRTUAL just shed 13% in a classic ’buy the rumor, sell the news’ move. But here’s the twist: Open interest in perpetual swaps hasn’t budged, and funding rates remain stubbornly positive.

Whales vs. retail: Who’s bluffing?

The usual suspects—overleveraged degens and institutional ’risk managers’ (read: panic sellers)—are doing their thing. Meanwhile, the OGs are quietly accumulating at these levels, betting the Fed’s next pivot will send speculative assets moonward again. After all, what’s a 13% drop when you’ve survived -80% drawdowns?

Technical outlook: The $2.30 support level held... barely. A close below that and we’re looking at a retest of the 200-day MA—where even the most cynical quant funds might start nibbling. Until then? Grab popcorn and watch the perpetuals.

Bonus finance jab: TradFi analysts calling this a ’crypto winter’ clearly never held bags through an actual bear market. Try 18 months of sideways torture next time.

Smart money acquires more VIRTUAL

Recent analysis on Nansen revealed that VIRTUAL has become the go-to AI token for smart money. These wallets—known for high-return strategies—have been quietly building positions.

Source: Nansen

In fact, 112 smart money wallets hold VIRTUAL, nearly as many as the combined total of the next three most-held tokens, which have 114 holders in total.

These 112 wallets now hold $15.92 million worth of the asset. This level of participation and volume suggests strong conviction in the asset’s rally potential.

Market traders align with smart money

While smart money is holding VIRTUAL, bullish interest is also building across spot and derivative markets.

In the last 72 hours, the spot market recorded $5.71 million in VIRTUAL buys, with much of it moved off exchanges—mirroring smart money behavior.

Meanwhile, in the derivative market, more long positions have appeared.

Source: CoinGlass

The Open Interest Weighted Funding Rate—which combines Open Interest and Funding Rate to forecast market direction—has remained positive.

A positive reading implied that most unsettled derivative contracts, worth $205.05 million, are from long traders.

When the derivative market tilts in favor of buyers, alongside steady accumulation in the spot market, it typically supports a positive price move.

A rebound is near — Chart reveals

The Bollinger Bands (BB), used to predict potential resistance and support based on price placement, suggest a relief bounce may be near.

On the 1-day chart, the price is approaching the mid-level band, around $1.70. This level could act as potential support and push the price higher.

The short-term target for this rally is $2.26, with a long-term target above $5.

Source: TradingView

On top of that, the Accumulation/Distribution (A/D) indicator has turned slightly upward—an early sign of renewed buying interest.

However, it remains in negative territory, suggesting not all investors are convinced yet.

Still, a sustained price bounce could push the A/D indicator back into bullish terrain, reinforcing VIRTUAL’s long-term upside.