The price of the virtual protocol on the tears was recently, as it caught a great attention after a large price was operated. According to GERHARD from Bitcoin Strategy YouTube, which has more than 136,000 subscribers, the apparent price increased by 146.51 % during the past week. Even during the past 24 hours, the trading volume jumped by 50 %, which indicates increasing interest. When writing, Virtual is traded at about $ 1.42, but the big question remains: How long can this momentum continue?
However, it turns out that this gathering is not run by the traditional purchase in the instant market. Gerahard notes that the stakes are often bets on the permanent future contracts behind this step. Open benefit, which means that the total amount of suspended bets was climbing sharply. Meanwhile, the volume of virtual protocol trading was more than one billion dollars a day.
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With a high price, sellers are forced out, who are betting on low prices, to close their sites, which leads to more purchase pressure. Interestingly, even with all this excitement, the virtual protocol still does not turn to Dex Screen, which suggests that most procedures occur through market makers and central exchanges instead of decentralized platforms.
Protocol assumptions of large liquidity movements and the effects of the ecological system
The assumption protocol was originally launched on the basic seriesBut most liquidity has now moved to Solana. This transformation is important because it puts more control of the hands of the central players who can move the price more easily.
The ecosystem of the broader virtual protocol, including many smaller projects associated with it, rose about 67.7 % during the past day. But Gerhard notes that this is not because of the new demand for the symbols of the ecosystems. Since many of them are associated with virtual and not against stablecoins or ethereum, when the Virtual price moves, they all follow automatically.
It is a virtual crane, not new users, who lead the gathering
It looks deeper, there is no significant increase in the user’s activity behind the mutation. Trading sizes have risen, but the number of active traders has been relatively low. Gerahard explains that the virtual price movement is mainly driven by future leverage contracts for benefit and short strikes, and not by a wave of new users who adopt the virtual protocol.
This creates a fragile position. As long as the stakes with strong benefit remain, the gathering can continue. But if the momentum slows down, things may turn into volatile very quickly.
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For those who jump, Gerahard recommends using an overdog strategy to protect gains with a high virtual price. Since this assembly has seen the minimum decline to date, with only about 8-9 % of clouds, it is important to stay active.
While the price of the virtual protocol has placed great numbers Recently, history shows that the gatherings they feed mainly by leverage can be reflected quickly. If you are trading by default at the present time, smart risk management may make the difference.
Also read: Prediction at XRP price for today (April 29)
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