Virtuals Protocol Price Forecast: VIRTUAL set to extend losses as triple top formation emerges:
Virtuals Protocol price drops over 10% on Monday after a failed breakout above key resistance.
Santiment data shows traders increase profit-taking activity, adding to the selling pressure.
The technical outlook highlights a possible triple top pattern with a potential breakdown, targeting the $1.23 mark.
Virtuals Protocol (VIRTUAL) price drops over 10% at the time of writing on Monday, trading around $1.78 following a failed attempt to break above a key resistance level over the weekend.
The decline suggests holders may be locking in profits and adding to the selling pressure. From a technical standpoint, forming a potential triple top pattern suggests that bearish momentum could intensify and target the $1.23 mark.
VIRTUAL holders book profits as bearish bets rise
Virtuals Protocol’s on-chain metrics show that VIRTUAL holders are booking some profits, according to Santiment’s Network Realized Profit/Loss (NPL), which computes a daily network-level Return On Investment (ROI) based on the coin’s on-chain transaction volume. Strong spikes in a coin’s NPL indicate that its holders are, on average, selling their bags at a significant profit. On the other hand, strong dips imply that the coin’s holders are, on average, realizing losses.
The chart below shows that the metric showed a strong spike on May 8 and May 9, the highest spike since December 16. Historically, when this spike occurred, prices fell nearly 20% to 30% due to increased selling pressure.
Another bearish sign is Coinglass’s VIRTUAL long-to-short ratio, which reads 0.87, the lowest level in over a month. A ratio below one reflects bearish sentiment in the markets as more traders are betting on the asset price to fall.
