Not long ago, I wrote about the way in which $NEAR and $TAO were more appropriately priced, using funding rate data, than $virtual.
Funding Rate Data is the mechanism used to tie perpetual futures to the spot price. Rates above 20% or below -20% tend to augur price-mean reversion (the price will go the other way).
Below, you can now see that $virtual has dropped from a 50% - 60% funding rate to about 10% with $TAO and $NEAR.
But the price of $VIRTUAL is still far richer if you look at some momentum metrics.
Featured is the SMA 200, the red line, and the price of $virtual.
I've also drawn a large red arrow to highlight how much higher the current price is above it's moving average.
It was at 84%+ and now it stands at about 78%. Typically, any crypto or stock (look at quantum stocks) that rises more than 60% above the SMA 200 crashes down in the near term--even if the idea is great.
I've been calling this one for days. It's just too hot for the moment, despite what the funding rates say.
Compare $virtual with $TAO.
Currently, $TAO stands just 4.21% above its SMA 200. It's also a leading AI project, you'll recall.
Why would you buy $virtual at this point when you could get a more fairly priced $TAO?
$NEAR is the largest AI project in the crypto space.
Despite that, it's currently suffering the most as it has dropped below its SMA 200 on an intra-day basis.
I've noticed that $NEAR tends to move with $NVDA, and since the latter was recently crushed, so too has $NEAR been. It's not a terrible idea, since $NEAR and $NVDA have a certain kind of partnership.
So, maybe wait just a moment for $NEAR.
Concluding Thoughts
Let's wrap this up with three summary thoughts.
First up, $virtual is crashing down just as I said it would. History suggests we've got further to fall. Maybe think about cycling out of that into something more established like $BTC for the moment.
Second, $virtual is getting cheaper--on a technical basis--and this means that you should watch it for a nicer entry point. I think DCA is a bit early right now.
Third, other AI projects, such as $TAO and $NEAR are far more fairly valued. They're worth considering.
Happy Trading!
-Sebastian Purcell, PhD
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