VIRTUAL Tanks 20%—Is a Comeback Still Possible?

VIRTUAL drops 20% as traders pull liquidity and open interest declines sharply.

Memecoin and DeFi weakness intensify selling pressure, dragging VIRTUAL further down.

Whales accumulate $67M in VIRTUAL, hinting at either a rebound or major sell-off.

Pain hit holders like a punch to the gut this week. Virtual Protocol — VIRTUAL, shed over 20% in just days, sending shockwaves through the memecoin community. Traders stared at red charts. Panic whispers echoed across crypto forums. But behind the bloodbath, smart money might be stirring. While smaller traders rush for exits, whales appear to be scooping up the fallen token. Is a reversal around the corner—or is the trap still setting?

Liquidity Exit Sparks Panic

The storm began with a sharp liquidity drop. Derivatives data flashed warning signs. Traders pulled nearly $9 million out of the market, mostly voluntarily. That move hints at growing uncertainty. Open Interest fell 5.51%, landing at $172.21 million. Meanwhile, liquidations reached $564,000—not massive, but enough to raise eyebrows. Funding rates slipped near zero. That signals fading bullish interest. A dip into negative territory could trigger more sell pressure.

Short-sellers would then dominate, reinforcing downward momentum. It’s a chilling setup, especially for holders already bleeding losses. Wider market forces aren’t helping either. Memecoins as a whole dropped 2.8% over the week. VIRTUAL, unfortunately, didn’t just follow the trend—it lagged behind. Even though the sector remains up 33% monthly, VIRTUAL posted a 3.45% decline. That shows just how much this correction has weighed on the token.

Whales Are Moving—But Why?

Then there’s DeFi, another piece of the puzzle. Trading activity collapsed on decentralized exchanges. Spot volume plunged from over $6.5 million to just $650,000 in days. That drop isn’t just severe—it’s catastrophic. Traders clearly lost confidence. Many likely dumped their holdings and stepped back. When volume falls this hard, momentum suffers. Projects lose visibility. Speculators search elsewhere for quick wins. VIRTUAL became the ghost at the party—still present but completely ignored.

Despite the carnage, large players didn’t flinch. In fact, they made bold moves. Data from Arkham Intelligence shows that $67 million worth of VIRTUAL flowed into top exchanges like Binance and Bybit. That activity could mean two things—neither of which should be ignored. First, those tokens could be getting stored by large investors. If so, this signals accumulation. A squeeze might be brewing as supply gets locked away. Prices could rebound fast and hard if buying resumes.

On the flip side, these holdings might just be topping up exchange reserves. If that’s true, brace for impact. The market could be prepping for a major dump. More supply hitting exchanges could tank prices even further, dragging VIRTUAL to new lows. The truth is that nobody knows yet. But what’s clear is this—something big is brewing behind the scenes. Traders should stay alert. Whether recovery or collapse comes next, the next move won’t be quiet.