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Whale Activity Boosts $VIRTUAL and $MORPHO, Despite Concerns Over Risk Profiles

In the rapidly changing world of decentralized finance (DeFi), whales shape market movements. Over the past 24 hours, amounts that are nothing short of staggering have been accrued by two prominent whales in the form of our two featured assets, $VIRTUAL and $MORPHO. It certainly has people talking, and it draws a large spotlight onto these two assets, which we take a closer look at in this post. Major Whale Accumulations Propel $VIRTUAL and $MORPHO The past day’s market movements have largely been driven by whale activity, and as per usual, that’s given us a good look at what some of the market’s deeper pockets are interested in. Over the past day, generally dipping conditions haven’t dissuaded whales from making sizable purchases. More specifically, they’ve added an estimated $3.03 million worth of $VIRTUAL and about $1.04 million worth of $MORPHO to their portfolios. A whale identified as 0x5607 made a significant purchase of 1.54 million virtual tokens worth about $3.1 million. Now, the whale holds 2.17 million virtual tokens valued at $4.37 million. This suggests that the whale is gaining confidence in the virtual tokens, particularly as they are moving up in the DeFi ecosystem. In parallel, whale 0x8a73 has been causing quite a stir in the marketplace for $MORPHO. This one investor recently added a staggering 380,100 $MORPHO tokens to their portfolio, forking out $1.16 million in the process. The purchase bumped their total stack up to an even more impressive 8.54 million $MORPHO, which now sits at a value of around $26.33 million. The sustained interest from this alias in the token underlines its appeal, even as concerns about the protocol’s risk profile hang in the air. $VIRTUAL and $MORPHO Continue to Be Accumulated by Whales In the past 24 hours, approximately $3.03M has been added to $VIRTUAL and $1.04M to $MORPHO , with most of the volume by 2 Whales: 1. Whale 0x5607 bought 1.54M $VIRTUAL (~$3.1M), increasing their total holdings to… pic.twitter.com/qQFd5RHBGg — iCrypto | Sentiment & On-chain Analysis (@iCryptoAI) January 28, 2025 High-Risk Profile of Morpho Users Raises Questions Interest from whales generally reflects confidence in a project. However, the Morpho protocol is under the microscope because the user base is at risk of default. A Blockchain Bureau report indicates that the average credit score for Morpho users is 551. That’s a lot lower than the average score of 633 across Compound, Aave, and other DeFi protocols. When you’re prepaying a loan, saying that you might be repaying with collateral (as Aave does), and then offering a 0% interest rate for a long time, you are assuming a default risk that is kind of nuts, right? Users with lower credit scores are more likely to experience liquidation events, which can make DeFi protocols less stable and can also hurt investor confidence. By the end of December 2024, Morpho had recorded the second-highest liquidation rate among DeFi protocols at 6.4%. That is a pretty big number, and it means that quite a few borrowers are being forced to withdraw from the system. CREDIT SCORE DISTRIBUTION – MORPHO vs OTHERS Morpho users, on average, are classified as higher risk compared to users of other DeFi protocols. The average credit score for Morpho users is 551, lower than the average score of 633 for users across other protocols. The… pic.twitter.com/ldO4HweOLD — Blockchain Bureau (@TheBlockBureau) January 27, 2025 To address these risks, specialists recommend taking steps like assessing borrowers’ credit scores when they take out a loan. A strong process for evaluating potential borrowers’ credit could help make sure that high-risk individuals don’t get loans and that we’re all not on the verge of being liquidated. The Implications of Whale Activity Large investments by whales in $VIRTUAL and $MORPHO suggest that these major players in the crypto markets see long-term potential in both tokens. For $VIRTUAL, the appeal likely stems from its growing utility and adoption within the DeFi space. Its price momentum and whale accumulation could attract more retail investors. A figure like that could amplify $VIRTUAL’s impact on the markets. Whales’ interest in $MORPHO is curious, considering the protocol’s higher liquidation rates and risk profile. They might be investing in the token with an eye on its growth potential or improvements to the protocol’s “risk management” over the next year or so. Nonetheless, whale activity also introduces volatility. Big trades can affect token values in a big way, resulting in sharp, short-term price moves. Retail investors should be cautious about taking our signals too literally and should consider the risks involved in just trying to emulate the big guys Looking Ahead With $VIRTUAL and $MORPHO gaining attention, the protocols serving these tokens must ensure they’re addressing the core challenges of each respective asset to ensure long-term sustainability. For Morpho, that means its higher-risk user base needs better safety procedures in place. Improvements in user safety could make some portions of the protocol less risky and certainly could make it this protocol more appealing than not to a class of investors who’re concerned about liquidation events. The developments surrounding the two protocols will certainly be of interest to the DeFi market at large. They touch on some big trends related to risk management, whale behavior, and token adoption. Will these two fatalistically challenged protocols manage to dig themselves out and achieve some level of success? If they do, the types of things they succeed at will be worth paying attention to. In the rapidly changing scene of DeFi, whale activity—bringing both chances and dangers—is still a sword with two edges. Presently, $VIRTUAL and $MORPHO are the two tokens in the limelight, and the marketplace is all ears to see how these two will fare in this ever growing attention and scrutiny. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: nexusplexus/ 123RF // Image Effects by Colorcinch U.Today

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Solana (SOL) at Risk: Could More Losses Be on The Horizon?

Solana started a fresh decline below the $250 support. SOL price is consolidating and might face resistance near the $235 and $242 levels. SOL price started a fresh decline below the $250 and $240 levels against the US Dollar. The price is now trading below $240 and the 100-hourly simple moving average. There is a key bearish trend line forming with resistance at $235 on the hourly chart of the SOL/USD pair (data source from Kraken). The pair could start a fresh increase if the bulls clear the $242 zone. Solana Price Dips Below $250 Solana price struggled to clear the $260 resistance and started a fresh decline, like Bitcoin and Ethereum . SOL declined below the $250 and $242 support levels. It even dived below the $230 level. The recent low was formed at $225 and the price is now consolidating losses. It climbed a few points above the $230 level. It cleared the 23.6% Fib retracement level of the downward move from the $244 swing high to the $225 low. Solana is now trading below $240 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $235 level or the 50% Fib retracement level of the downward move from the $244 swing high to the $225 low. There is also a key bearish trend line forming with resistance at $235 on the hourly chart of the SOL/USD pair. The next major resistance is near the $242 level. The main resistance could be $250. A successful close above the $250 resistance zone could set the pace for another steady increase. The next key resistance is $260. Any more gains might send the price toward the $275 level. Another Decline in SOL? If SOL fails to rise above the $235 resistance, it could start another decline. Initial support on the downside is near the $225 zone. The first major support is near the $222 level. A break below the $222 level might send the price toward the $212 zone. If there is a close below the $212 support, the price could decline toward the $200 support in the near term. Technical Indicators Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone. Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level. Major Support Levels – $225 and $222. Major Resistance Levels – $235 and $242. U.Today