VVV Plunges 21% as Open Interest Drops and Long Liquidations Hit
Venice Token (VVV) fell 21.27% in 24 hours as trading volume dropped 27.74% to $96.76M, signaling weaker market participation.
The sell-off accelerated after VVV lost its short-term structure. The token broke below an ascending support trendline following rejection near the $20.86 resistance level. Price weakened to about $15.23, while MACD turned bearish as the MACD line crossed below the signal line and the histogram deepened negative.
Derivatives data points to fast leveraged de-risking. Open Interest (OI) declined 30.34% to $85.72M, suggesting traders reduced exposure rather than rotating into fresh longs. Long liquidations dominated: about $310.91K longs versus $36.17K shorts, with major contributions reported from Binance, Hyperliquid, and Bybit. This pattern implies an overextended long position was flushed out.
Key levels to watch: $12.41 as the next support; if it fails, the next major demand zone is around $8.49. Until OI stabilizes and spot demand returns, traders may remain cautious about aggressive bullish entries.
Keywords for traders: VVV, Open Interest, long liquidations, liquidation wave, support break, derivatives risk-off.
Bearish
The news is bearish because VVV’s price drop is reinforced by derivatives stress signals: Open Interest fell 30.34% while long liquidations ($310.91K) far outweighed shorts ($36.17K). This combination typically marks a leverage unwind (a “long squeeze flush”) rather than healthy dip-buying. Similar past liquidation waves often lead to short-term volatility and weak rebounds, because forced sellers and reduced OI remove liquidity from the uptrend.
In the short term, traders should expect choppy price action under the broken ascending support, with technical pressure indicated by MACD turning negative. The nearest downside magnets are $12.41, then $8.49 if that level fails.
For the long term, the recovery case depends on stabilization of Open Interest and returning spot demand. Until OI stops bleeding, rallies are more likely to be sold into, keeping the market in a corrective regime rather than a renewed uptrend.