Analyzing if VIRTUAL can recover from its 20% weekly drop

Key Points

1. VIRTUAL's price has fallen over 20% in the past week, driven by intensified selling activities and liquidity outflows from the derivatives market.

2. Open Interest dropped 5.51% to $172.21 million, with $9.48 million in closed contracts and $8.9 million voluntarily withdrawn by traders, indicating market uncertainty.

3. Memecoins and DeFi weakness contributed to VIRTUAL's decline, with spot DEX volume plunging from over $6.5 million to $650,000 in a week.

4. Large entities have accumulated $67 million worth of VIRTUAL from exchanges like Binance and Bybit, potentially signaling a supply squeeze or future sell-off.

5. The Open Interest Weighted Funding Rate dropped to 0.0001%, nearing zero, which could indicate a bearish market sentiment if it turns negative.