On May 7, 2025, the cryptocurrency market experienced a notable shift as Virtuals Protocol (VIRTUAL) saw a significant 15% drop in its value within the last 24 hours. This correction came after an impressive rally of 200% over the previous month, highlighting the volatile nature of the crypto market.
The token was testing a crucial resistance level at around $1.53 when the drop occurred. Despite this correction, the so-called "Smart Money" wallets—those held by experienced and typically wealthy investors—have been increasing their holdings in VIRTUAL. In the past week alone, these wallets added 14.4% to their supply, demonstrating confidence in the token's long-term prospects.
As of May 2, 2025, the number of VIRTUAL tokens held by Smart Money wallets on the Ethereum network rose from 16.49 million to 18.57 million, maintaining stability at approximately 18.54 million tokens since then. This accumulation amidst a price drop suggests that these investors remain optimistic about future price increases.
Interestingly, the recent 15% price correction has not triggered a wave of selling from Smart Money wallets, indicating a patient rather than panic-driven response. This behavior can often signal a belief in a broader upward trend or a strategic pause before reallocating investments.
However, the BBTrend indicator for VIRTUAL has plummeted to 6.76, down from 31.91 just two days prior. This marks a significant weakening in the upward trend, as the BBTrend is a volatility-based indicator that measures the strength and direction of a trend. Values above zero indicate a bullish trend, and the recent drop suggests that momentum may be waning.
Since April 24, 2025, the BBTrend for VIRTUAL had been consistently positive, reflecting a bullish behavior for nearly two weeks. The current evaluation at 6.76 still indicates a positive trend, but the sharp decline raises concerns that momentum is beginning to fade. Traders are now closely monitoring whether the BBTrend will continue to decrease or stabilize, as either outcome could determine whether VIRTUAL will regain strength or weaken further.
Currently, VIRTUAL is trading just below the critical resistance level of $1.53. If buying momentum returns—especially with renewed interest in AI crypto agents—the token may test the $1.89 level soon. Should it conquer this area, the path above $2, a level not reached since January 30, 2025, could open up.
Conversely, failure to reclaim the $1.53 level could trigger further corrections, with the next key support level situated at $1.19. Traders are left questioning whether VIRTUAL will break through the $2 mark or slide back to $1.19.
Meanwhile, in the meme coin sector, Dogecoin (DOGE) is also experiencing fluctuations. On the same day, Dogecoin is priced at $0.17, reflecting an intraday decline of about 1%. However, bullish traders are optimistic about the coin's potential to reach $0.20, raising the question of whether this recovery will liquidate nearly 1% of the open interest (OI) in DOGE, valued at $1.65 billion.
On May 7, 2025, Dogecoin recorded a price increase of 1.98% over 24 hours, trading at $0.1712 or approximately Rp2,832. The coin's market cap is around $25.55 billion, with a trading volume that surged by 28% to $859.4 million in the same timeframe. Dogecoin's price has fluctuated, reaching a low of Rp2,704 and a high of Rp2,864.
Since April 23, 2025, a low point on Dogecoin has formed a support trend line. However, the failure to create a new swing high has resulted in the establishment of a resistance trend line above. This confluence of trend lines has created a falling wedge pattern, which has hindered DOGE's current price action.
On May 6, 2025, Dogecoin tested the lower boundary of the falling wedge pattern, experiencing price rejections that hint at a potential upward movement. The MACD and signal lines support the possibility of this upward movement, as the average lines are preparing for a positive crossover.
Additionally, Dogecoin is poised to open 97.89 million DOGE tokens worth $16.57 million in the next seven days, representing 0.07% of the total circulating supply. Although this minor supply increase is not expected to cause sharp corrections, it adds another layer to the ongoing market dynamics.
As the market awaits the Federal Reserve's decision on interest rates, the sentiment across cryptocurrencies remains cautious. The Federal Open Market Committee (FOMC) meeting on May 7, 2025, is anticipated to keep interest rates unchanged, which could provide some stability to the market.
In light of these developments, both VIRTUAL and Dogecoin are at critical junctures. VIRTUAL's potential to break through resistance levels or correct further is under scrutiny, while Dogecoin's resilience amidst bearish trends will be tested as traders look for signs of recovery. As always, investors are reminded to conduct thorough research and remain vigilant in this volatile market.
