VIRTUAL Protocol (VIRTUAL) has become the center of attention in the crypto market after a dramatic 13.95% drop in just 24 hours, leading losses among major digital assets. The selloff reflects not only weakening sentiment but also mounting concerns over whale activity, with data now showing that a staggering 93% of the token’s supply is controlled by just 100 addresses. This level of ownership concentration raises serious questions about the asset’s price stability and long-term viability.

Blockchain analytics firm Nansen confirmed that this whale dominance has reached an unprecedented level. While such consolidation can sometimes indicate investor confidence, it also presents a significant vulnerability. When a handful of wallets command most of the supply, even modest sell-offs from these large holders can trigger steep declines. In highly speculative markets like crypto, that risk is compounded by volatility, low liquidity, and the presence of leveraged positions.

Adding to the concerns, these same whale wallets have reportedly been in profit over the past 24 hours, with “smart money” wallets—known for their calculated and often profitable moves—showing 14.35% gains during the downturn. If these holders decide to lock in profits by selling, the resulting flood of supply could intensify the downward momentum, potentially overwhelming the already fragile market.

Despite this bearish backdrop, spot traders have been bucking the trend. In a surprising turn, retail investors appear to be buying the dip. Data from CoinGlass reveals that $1.42 million worth of VIRTUAL was purchased on spot markets in the last 24 hours, and over the past week, total spot accumulation has reached $10.8 million. This ongoing buying streak suggests a disconnect between whale behavior and retail sentiment, as smaller investors bet on a reversal or long-term value play.

Still, such optimism may be premature. From a technical standpoint, VIRTUAL continues to show signs of weakening. The altcoin recently fell through two key support levels—first at $1.62, then at $1.46. These breaches signal increasing selling pressure and open the door to further losses. Should this trend persist, analysts expect the next support levels to emerge around $1.27 and, if broken, potentially $1.064—a level that could mark a new local low.

Momentum indicators provide little comfort either. The Relative Strength Index (RSI), a widely used metric to gauge whether an asset is overbought or oversold, currently stands at 35.60. Although still above the critical 30 mark, which denotes oversold conditions, the downtrend in RSI suggests that selling momentum remains strong. If the RSI dips below 30, a technical bounce could follow—but such recoveries are often short-lived without broader fundamental support.

The underlying risk is rooted in the token’s increasingly unbalanced holder base. While retail traders continue to accumulate VIRTUAL, their impact on the market is likely limited compared to whales. If large holders decide to exit en masse, retail buying will struggle to absorb the pressure, potentially leading to rapid price declines. Additionally, the recent decline in price has not yet triggered significant panic among whales, but that could change quickly in response to market volatility or negative sentiment.

What complicates the outlook even further is the current macro backdrop. With markets overall leaning risk-off due to economic uncertainty and regulatory scrutiny, smaller altcoins like VIRTUAL are especially vulnerable to sudden sentiment shifts. In such an environment, tokens dominated by whale wallets can see disproportionate moves both up and down, depending on the trading actions of a few key players.

In conclusion, while VIRTUAL is seeing short-term buying interest from retail investors, the overwhelming concentration of supply in the hands of whales poses a serious systemic risk. Unless the distribution of holdings becomes more balanced or institutional interest returns in force, the token remains highly susceptible to manipulation and sudden price drops. Technical indicators point to further downside, and only a clear reversal in whale behavior or stronger fundamental demand can alter VIRTUAL’s current bearish trajectory.