The post VIRTUAL eyes $1 breakout – Yet THIS signal raises red flags appeared on BitcoinEthereumNews.com.

Virtual Protocol’s [VIRTUAL] has recorded one of the strongest short-term price moves in the latest market rebound. At the time of writing, the asset gained 16% over the past day and was trading at $0.579. The rally coincided with improved liquidity conditions and growing confidence that the broader market may be entering a recovery phase. However, spot volume declined sharply, down 36% to $110 million, raising questions about the sustainability of the move. Capital inflows against Binance volume Activity remains concentrated in VIRTUAL’s perpetual futures market, where capital inflows have increased notably. Open interest, a key measure of capital committed to perpetual contracts, rose by 17% to $55 million, according to CoinGlass data. Source: CoinGlass The increase reflects renewed investor willingness to deploy leverage in anticipation of further price movement, either through long or short positioning. As prices advanced, liquidations were largely skewed toward short positions, indicating that much of the newly added exposure may be positioned on the long side. This is reinforced by the aggregate long-to-short ratio, which remains above 1 at 1.012, signaling that buyers continue to control a larger share of overall futures volume. Despite bullish signals across the broader perpetual market, Binance data presents a contrasting picture. Binance accounts for a significant share of VIRTUAL’s derivatives liquidity, with $12.6 million in open interest and $56.01 million in trading volume. On the exchange, the long-to-short ratio stands at 0.732, indicating that sellers dominate trading activity. This divergence suggests that Binance traders could exert downward pressure on the price if selling momentum persists. Technical structure and key support levels VIRTUAL is currently trading near a critical demand zone on the daily chart. Historically, this level has acted as a base for upward moves, triggering rebounds on three prior occasions. A failure to hold this support would expose…

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Filed under: News - @ February 7, 2026 5:19 pm