"The market’s cooling off and traders are stepping back," said one analyst following Venice Token’s recent price action. VVV’s failure to break through a key Fibonacci resistance zone triggered an 11% plunge within 24 hours, shaking confidence among investors and prompting a sharp reversal downward.
Open Interest on the VVV network dropped 17% to $42.9 million in one day, a sign that many participants are unwinding leveraged positions amid rising uncertainty rather than doubling down. Usually, a price drop paired with rising open interest signals fading confidence, but here, liquidations of long positions are driving the OI decline. Funding rates remain slightly positive, showing longs are still paying a premium despite the price correction, which could make the market vulnerable if buyers continue pulling back.
The struggling token has been rejected near $14.85 after hitting the Fibonacci golden zone between $12.7 and $15, a key resistance area previously helping bulls rebuild. Momentum indicators like the Stochastic RSI have turned bearish after moving out of overbought territory, confirming the selling pressure is gaining strength. This confluence of weakening momentum and shrinking derivatives activity leaves VVV at a critical juncture.
If this bearish trend keeps up, the $10 price mark becomes the next major support zone to watch. It represents a liquidity pool where buyers might soon step in to arrest the decline. This dynamic aligns with recent market moves seen in other tokens as volatility returns to crypto markets after a period of relative calm. Ethereum’s own battle with key resistance mirrors some of the pressure VVV faces now.
This article is for informational purposes and does not constitute financial advice.
