The price of Virtual Protocol has been in a tear lately, attracting great attention after a huge price race. According to Gerhard de The Bitcoin Strategy Youtube Channel, which has more than 136,000 subscribers, the virtual price increased by 146.51% in last week. Even in the past 24 hours, the negotiation volume has jumped 50%, showing growing interest. In writing, Virtual is negotiated about $ 1.42, but the big question remains: how long can this movement last?
However, it turns out that this rally is not supplied by traditional purchase on the cash market. Gerhard stresses that it is mainly bets on perpetual future who are at the origin of this decision. The interest opened, which means that the total amount of unpaid bets, has climbed heavily. Meanwhile, the virtual protocol trading volume has reached more than $ 1 billion a day.
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As the price increases, the sellers uncovered, those who bet on a price drop, are forced to close their positions, triggering even more purchase pressure. Interestingly, even with all this excitement, the virtual protocol is still not trendy on Dex Screenner, suggesting that most of the action occurs through decision -makers and centralized exchanges instead of decentralized platforms.
Big liquidity virtual protocol and ecosystem effects
Virtual protocol originally launched on the basic chainBut most of its liquidity has now moved to Solana. This change is important because it puts more control in the hands of centralized players which can more easily move the price.
The wider virtual protocol ecosystem, including various smaller projects, also increased by around 67.7% during the last day. But Gerhard notes that this is not due to a new request for these ecosystem tokens. Since many of them are associated with Virtual rather than stablecoins or Ethereum, when the price of Virtual moves, they all follow automatically.
It is a virtual lever effect, no new users, causing the rally
By looking more deeply, there is no major increase in user activity behind overvoltage. Trading volumes have increased, but the number of active merchants has remained relatively low. Gerhard explains that the action of virtual prices is mainly motivated by future leverage and short compressions, and not by a wave of new users adopting a virtual protocol.
This creates a fragile situation. As long as the leverages remain strong, the rally could continue. But if the momentum slows down, things could become volatile very quickly.
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For those who intervene, Gerhard recommends using a Stop-Loss strategy to protect gains as the price of virtuals increases. Since this gathering has experienced a minimum of withdrawals so far, with only around 8 to 9% of maximum titles, it is important to remain active.
While the price of the virtual protocol has implemented impressive figures Recently, the story shows that the rallies supplied mainly by the lever effect can be reversed quickly. If you are negotiating virtual at the moment, intelligent risk management could make all the difference.
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