Virtuals Protocol [$VIRTUAL] rallied nearly 5% in the past 24 hours, with an Open Interest increase of nearly 17%. The rally, rising open interest, and stronger trading volume suggest improving short-term sentiment, although the broader trend remains under pressure.
This statement was reinforced by the high daily trading volume. According to CoinMarketCap data, the volume in the past 24 hours at press time was $71.1 million, more than double the previous day’s volume.
Weekends tend to see low volume, and it could be that Monday kicked off $VIRTUAL’s rally. Bitcoin [BTC] was also challenging the $65.2k local supply zone.
AMBCrypto reported that Virtuals Protocol had introduced customizable tokenized indexes to the Robinhood Chain. Any user can publish such a composite asset and would earn fees when others mint the associated token.
So far, the news has not been enough to nudge the altcoin prices back above key overhead supply zones. Let’s examine where these were and how strong demand really has been.
$VIRTUAL still labors within a downtrend
The swing structure on the 1-day timeframe was bearish. As things stand, a move below the $0.459 swing low would indicate a bearish trend continuation. Meanwhile, a rally past $1.19 is needed to flip the swing structure bullishly.
The $VIRTUAL price gain of 17% in the past week was set against this bearish backdrop. The rally has reached the $0.63-$0.65 local supply zone. The same area had rejected the bulls back in mid-June.
The OBV has been trending lower since May. The 100% spike in daily trading volume could be a misleading sign. Though the RSI was above 50 to signal upward momentum, a lack of sustained buying volume over the past two months was a telltale sign of a weak bounce.
Traders’ call to action- Sell, but be ready to flip biases
In the short-term, a rejection from the $0.65 local supply zone is expected. However, if $VIRTUAL prices breach this area, a bullish move as high as $1.04 and even $1.19 becomes possible.
Therefore, traders can maintain a bearish bias until $0.65 is conquered. Once it is flipped to support, swing traders can try to profit from the rally toward $1, although they should remember that the higher timeframe structure remained bearish.
Final Summary
- The Virtuals Protocol price and volume spike on Monday could be a sign of a bullish short-term price move.
- The long-term trend was bearish, but if $0.65 is flipped to support, a rally toward $1.0-$1.2 could follow.