The VIRTUAL token experienced significant volatility over a 24-hour period, initially falling 12% and extending its weekly losses to 11%. This decline was driven by a sharp shift in the perpetual futures market, where a capital exit of $9.4 million reduced total open interest to approximately $76 million. The OI-Weighted Funding Rate dropped to -0.0411% on February 28, its lowest reading of the year, indicating aggressive short positioning reminiscent of conditions seen before a downturn in October 2025.
Despite bearish derivatives sentiment, spot investors displayed contrasting behavior. During the price decline, spot buyers accumulated roughly $245,000 worth of VIRTUAL, marking the first notable accumulation phase since February 24. This suggests some investors view the dip as a buying opportunity for medium-term prospects.
On-chain metrics, however, reveal underlying weakness. Data from Artemis shows user count has dropped to around 24,000, while daily protocol revenue has sharply declined from $133,000 on February 14 to approximately $32,000. This indicates softening on-chain demand which could pressure long-term performance.
Subsequently, the token rallied roughly 9%, with daily trading volume expanding beyond $125 million. Open Interest climbed about 11% to $84 million, signaling fresh capital inflow. The price tested key resistance between $0.70–$0.72, with technical indicators like the RSI at 56 and a positive MACD histogram suggesting room for further upside. A decisive close above $0.7416 could target the $0.84–$0.90 zone, while failure risks a pullback toward $0.62–$0.65 support. The market's next move is seen as a tug-of-war between derivative short positioning and spot accumulation, with the upcoming March AI DAPP launch also influencing sentiment.
