After a major 237% surge last month, VIRTUAL—one of the hottest AI-based cryptocurrencies—has entered a cooling-off phase, slipping 13% over the past week and 2.3% in the past day. But despite this pullback, both smart money and retail traders continue to show strong confidence in the token’s long-term potential.

Smart Money Keeps Buying

New data from blockchain analytics platform Nansen highlights that “smart money” wallets are steadily accumulating VIRTUAL, even as the broader market takes a breather. These wallets typically belong to experienced investors and funds known for consistently high returns.

At the moment, 112 of these top-performing wallets hold a combined $15.92 million worth of VIRTUAL. This number is nearly equal to the combined smart money holdings of the next three most popular tokens, underlining the market’s strong conviction in VIRTUAL’s future growth.

This level of accumulation suggests that major players are preparing for another leg up and are treating the current dip as a buying opportunity.

Spot and Derivatives Markets Remain Bullish

It’s not just smart money that’s staying bullish. Retail traders and institutional participants are also showing confidence through the spot and derivatives markets.

In the past 72 hours, the spot market recorded $5.71 million in VIRTUAL purchases. Notably, much of this volume was transferred off exchanges, a common tactic used by long-term holders to secure assets in private wallets—similar to how smart money behaves.

At the same time, the derivatives market has seen a rise in long positions. According to data from CoinGlass, the Open Interest Weighted Funding Rate remains positive. This metric combines funding rate with open interest to gauge market sentiment. A positive reading means that most outstanding contracts—currently worth over $205 million—are betting on the price moving higher.

Together, rising spot accumulation and bullish derivatives data paint a strong picture of continued investor confidence.

Technical Chart Suggests a Bounce Is Near

VIRTUAL’s price action on the daily chart also supports the case for a potential rebound. According to the Bollinger Bands indicator, the price is nearing the mid-band level at around $1.70. This area often serves as support and could trigger a bounce if buying pressure increases.

If the bounce holds, the short-term price target sits around $2.26. For investors looking further ahead, analysts are eyeing a possible move above $5, assuming momentum continues to build and market conditions stay favorable.

Supporting this outlook is the Accumulation/Distribution (A/D) indicator, which measures the strength of buying or selling pressure. While the A/D line is still in negative territory, it has begun to turn slightly upward—an early signal that buyers may be stepping back in.

If price action strengthens and pushes the A/D line into positive territory, it would likely confirm a renewed bullish phase.

What to Watch Next

VIRTUAL’s 13% pullback may look like a cause for concern at first glance, but the underlying data suggests otherwise. High-conviction holders are buying the dip, long positions in the futures market are increasing, and price indicators hint at a nearby rebound.

While a full recovery to recent highs will depend on broader market sentiment and follow-through buying, the current setup appears to favor the bulls. As long as VIRTUAL can maintain support near the $1.70 level and accumulation continues, the path toward new highs remains open.

For now, investors are watching closely to see whether this consolidation phase will end with a sharp move upward—or if more patience will be needed before the next breakout.