The Virtuals Protocol [VIRTUAL] has recently experienced a significant sell-off, causing the altcoin to slide by 9% and reducing its weekly gains by 25%. This downward trend was primarily driven by smart money wallets, which sold $1.2 million worth of VIRTUAL in the past seven days. However, in a surprising turn of events, these same smart money investors have re-entered the token by buying $76,000 worth of VIRTUAL in the last 24 hours.
What’s intriguing is the reason behind this sell-off and subsequent buyback by smart money holders. According to Nansen’s report, VIRTUAL currently boasts the highest number of smart money holders compared to any other memecoin or AI token in the market. Smart money investors are known for entering early positions in tokens and securing significant price gains.
Despite selling off a substantial amount of VIRTUAL in recent weeks, smart money investors seem to be strategically resetting their positions to potentially drive a new price surge. This buyback coincides with VIRTUAL trading along a major ascending support level, which has historically sparked significant rallies for the token.
Analysis suggests that VIRTUAL has a high probability of gaining up to 45%, potentially reaching $2.5. However, if the rally fails to materialize, there is a risk of a drop with the token declining to $1.17.
Despite the recent sell-off, VIRTUAL remains the fourth-best performing token over the last 90 days, with a remarkable 139.78% increase. It ranks just below popular memecoins like Fartcoin [FARTCOIN] and SPX6900’s [SPX], as well as Form [FORM], a leading SocialFi token.
Furthermore, in the past month, AI tokens, including VIRTUAL, ranked fifth in the market, posting a 10.8% gain. This alignment between VIRTUAL’s performance and the AI token segment ranking indicates continued trader interest in the asset, potentially paving the way for another rally in the near future.
In conclusion, despite the recent fluctuations in price, VIRTUAL’s strong performance history and continued interest from smart money investors suggest a potential for a recovery and further price appreciation in the coming days. Stay tuned for more updates on VIRTUAL’s market movements and potential price actions.