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VIRTUAL Token Suddenly Tumbles 35% from ATH to 7-Day Low
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VIRTUAL Token Suddenly Tumbles 35% from ATH to 7-Day Low

Jan, 09 2025 16:49
VIRTUAL Token Suddenly Tumbles 35% from ATH to 7-Day Low

The VIRTUAL token, central to the Virtuals Protocol, soared to an all-time peak of $5.25 on January 2. Yet, this meteor-like rise was short-lived, as its value plummeted by 35% over the past week. Consequently, VIRTUAL has emerged as the poorest performer among the top 100 cryptocurrencies within this timeframe, continually hitting fresh lows following its apex.

The broader market's consolidation partly mirrors VIRTUAL's steep decline. A significant reduction in demand since it peaked contributes to this downward trajectory. Santiment's on-chain data highlights an alarming 88% drop in the daily creation of new addresses for trading VIRTUAL since the token reached its zenith on January 2.

A contracting new demand signifies fewer buyers stepping in, thereby diminishing overall market enthusiasm. This dynamic suggests a potential prolongation of VIRTUAL's downward price spiral as selling pressure exerts dominance over demand.

Falling open interest signals traders shutting positions amidst a price decline, reflecting waning market conviction and a shortfall in new participants.

In technical terms, VIRTUAL's Relative Strength Index (RSI) on its daily chart suggests an imminent dip below the 50-neutral threshold, indicating amplified selloffs.

This momentum indicator, crucial for assessing an asset's overbought or oversold conditions, points to amplifying bearish trends. Traders view this as a precursor to continued declines, foreseeing the price potentially tumbling to $1.31 should buying pressure falter further.

Meanwhile, TradingView's price analysis underscores these findings, projecting possible declines but leaving room for potential market sentiment shifts. If sentiment turns favorable, VIRTUAL's price could rebound, striving to recapture its former high.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
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