Venice Token [VVV] has faced several challenges as it tries to recover.
At press time, VVV’s price fell by 11% in the last 24 hours as it failed to breach one of the key Fibonacci golden zones, which normally forms resistance in a corrective rally. The failure has forced the price to reverse sharply to the downside.
VVV traders are stepping back
Market participation has shown signs of cooling down.
At the time of writing, the network’s Open Interest (OI) has dropped by 17% to $42.9 million in just a day, indicating that participants are unwinding their positions amid increasing levels of uncertainty.
When prices fall, rising OI usually signals waning confidence rather than new long positions. Although leveraged positions have dropped, largely due to increased long liquidations, this does not necessarily confirm a continued bearish trend.
Funding data raises caution!
VVV’s Funding Rate was slightly above 0, suggesting that the market remains relatively overvalued. The development implies that long position takers are still paying at a premium despite the recent correction.
That imbalance can leave the market vulnerable if the buyers continue reducing exposure. Meanwhile, the aggressive bearish trend is clearing out open long positions.
All in all, the two metrics point to fading bullish momentum rather than renewed accumulation. The alignment increases the chances of prolonged VVV’s bearish run.
Will the current bearish trend push VVV to $10?
On the daily chart, VVV has established a local high at $14.85 after rejecting the Fibonacci golden zone between $12.7 and $15, weakening the structure that bulls had been trying to rebuild.
Momentum indicators have also turned bearish. The token’s Stochastic RSI has rolled over after reaching overbought territory as of writing, a signal that buying pressure is beginning to fade as sellers regain control.
The combination of weakening momentum and shrinking derivatives activity leaves the market at an important point.
If selling pressure continues, $10 becomes the next major level to watch for VVV investors, as it represents the nearest liquidity zone where buyers could attempt to slow the decline.
Final Summary
- VVV price has declined by 10% after a sharp rejection at the Fibonacci golden zone, with the Stochastic RSI just rolling over from overbought territory.
- The network’s open interest has also declined 15%, while funding rates continue to signal an overstretched market.
