VIRTUAL, the native token of Virtuals Protocol, has recently captured the attention of investors for more than just its price movement. In a dramatic turn of events, the token experienced a sharp 9% drop within 24 hours, slashing its weekly gains by nearly a quarter. However, beneath the surface of this correction lies a complex and potentially strategic play by influential market participants known as smart money investors.

These smart money investors, typically composed of experienced traders and institutions with a history of entering early and exiting profitably, seem to have played a pivotal role in VIRTUAL’s recent volatility. According to blockchain analytics platform Nansen, VIRTUAL currently has the highest concentration of smart money holders among all memecoins and AI-focused tokens in the crypto space. This is a significant detail, as tokens with substantial smart money presence often outperform their peers over time.

In the past week alone, wallets tagged as smart money dumped around $1.2 million worth of VIRTUAL. When looking at the broader picture over the last 30 days, these investors have sold a total of approximately $424,000 worth of the token. This mass exit contributed heavily to the recent price drop, as large-scale sales typically cause ripple effects across smaller traders and automated systems.

But just as quickly as they exited, smart money seems to be dipping back in. Within the last 24 hours, these same wallets began re-accumulating the token, purchasing an estimated $76,000 worth of VIRTUAL. While this may seem minor in comparison to the earlier sell-off, it could represent the beginning of a more coordinated re-entry strategy. Such behavior often indicates a deliberate attempt to reset the market and establish a new base before the next upward move.

Supporting this idea is the current position of VIRTUAL on the charts. The token is trading along an important ascending support line that has, in the past, acted as the springboard for strong price rallies. Analysts point out that on at least two prior occasions, bounces off this very level resulted in significant upward momentum. If history repeats itself, VIRTUAL could soon rally by as much as 45%, reaching an estimated price of $2.50. Of course, if the support level fails to hold, the next area of potential interest lies much lower, around $1.17.

Adding another layer of optimism is VIRTUAL’s strong track record over the last three months. Despite its recent correction, the token has managed to hold its position as the fourth-best performing cryptocurrency over a 90-day period, boasting an impressive gain of nearly 140%. Only a few niche tokens, such as Fartcoin, SPX6900, and Form, have outpaced it, underscoring VIRTUAL’s overall strength in a competitive and often unpredictable market.

Part of this strength can be attributed to the broader rise of AI-related cryptocurrencies. Over the last month, data from Artemis shows that tokens categorized under the AI segment have posted an average gain of 10.8%, placing them among the top five performing categories in the market. VIRTUAL’s consistent performance in line with this trend speaks volumes about the sustained interest in AI-driven blockchain projects.

What remains to be seen is whether this renewed smart money interest marks the beginning of a longer-term uptrend or is merely a short-term positioning tactic. The crypto market is known for its sudden reversals and unpredictable sentiment swings. Still, smart money movements are not usually random. These investors often operate with long-term strategies and deeper insights into market dynamics.

For retail investors watching from the sidelines, VIRTUAL’s current situation is a reminder of how quickly the tide can turn in crypto markets. While risks remain, especially if the broader market weakens, the alignment of technical support, sector strength, and renewed accumulation by experienced investors makes VIRTUAL a token worth watching closely in the days ahead.