VIRTUAL is up 90% – Will the smart money craze push the price above the next $3?

Virtuals Protocol (VIRTUAL) has extended the bullish streak with a 60% increase over the past month, as market sentiment and the activity of smart investors leaned in favor.

Market sentiment analysis shows that the activities of smart money and the increasing interest in AI tokens are placing VIRTUAL in a strong position to break out in the coming days.

Impact of smart money flows and the development of the AI sector

According to data from Nansen, more and more smart investors are increasing their positions.

Smart money refers to investors known for their ability to place profitable bets – buying low and selling high to realize significant profits.

The amount of VIRTUAL tokens held by smart investors has increased by 5.43% to 18.72 million tokens.

Source: NansenInterestingly, whales have also entered the game, increasing their holdings by 2.24%, to 827,894 VIRTUAL in just the past 24 hours. Of course, this accumulation activity does not occur in isolation.

The increasing concern for VIRTUAL seems to be related to the overall performance of the AI token sector.

At the time of writing, the AI token sector has increased by 5.2% in the past 7 days, contributing to the likelihood that VIRTUAL will continue to be bullish.

This trend indicates that currently a large portion of liquidity in the market is being poured into this sector, further reinforcing the breakout potential of VIRTUAL.

Smart money and whales are not the only ones buying VIRTUAL, as spot and derivatives traders are also participating to benefit.

How far do spot and derivatives traders invest?

Spot and derivative traders are reflecting the bullish trend of the market.

The spot market has been very positive for VIRTUAL. Since April 28, a total of $32.8 million worth of VIRTUAL has been accumulated from exchanges.

This accumulation activity shows that traders are transferring assets to their private wallets. Such significant outflows can lead to a Short Squeeze.

! Source: CoinGlassBesides, derivatives data shows momentum accelerating. (OI) open contracts soared 18.57%, to $292.17 million in just 24 hours, while trading volume surged by 49%, reaching $1.34 billion.

The futures market also recorded a funding rate (phí tài trợ) at a healthy level of 1.01 – indicating a bullish trend.

If this trend continues, it could further strengthen the bullish momentum of VIRTUAL and attract more interest from leveraged investors.

Source: CoinGlass## T****he conflicting sentiment still exists towards VIRTUAL

Despite the strong bullish momentum, the short-term correction scenario has not been completely ruled out. Data from the Liquidation Map shows the risk of prices dropping to the level of 2.3 dollars — a threshold that could allow the market to liquidate excessive Long positions and reset before continuing the next bullish phase.

Source: CoinGlassSuch a move could be an opportunity for whales and smart investors to accumulate at a discounted price before the price could turn bullish.

Overall, market sentiment still leans towards a bullish trend and VIRTUAL seems to have more potential for a bullish increase rather than a decrease.

Dinh Dinh