Verasity (VRA) has declined into a critical long-term support area after a sharp sell-side liquidity sweep on the higher timeframes. Technical analysis shared by EGRAG CRYPTO highlights this region as a historical demand zone, making it a key level to monitor for any potential price reaction.

The asset is now trading near some of its lowest levels in recent years, placing it at a technical and fundamental inflection point. While the chart suggests the possibility of a short-term relief bounce, broader concerns surrounding tokenomics and utility continue to weigh on sentiment.

Sell-Side Liquidity and Market Structure

On the monthly timeframe, VRA has moved directly into a sell-side liquidity area where prior accumulation previously occurred. Such zones often attract speculative interest as price searches for equilibrium after extended downside moves.

EGRAG’s chart identifies a highlighted demand zone that may act as temporary support. A green marker on the chart indicates the analyst’s final buy order, suggesting that some long-term participants are watching this region closely for a reaction rather than chasing higher prices.

However, it is important to note that demand zones do not guarantee reversals. Without confirmation through volume expansion or structure reclaim, any bounce remains corrective rather than trend-defining.

Token Supply Expansion and Dilution Risk

A major headwind for VRA is the recent expansion of its total token supply to 200 billion. This change has materially altered the project’s tokenomics by increasing dilution and reducing scarcity.

From a valuation perspective, a higher supply significantly raises the market capitalization required for VRA to revisit previous all-time highs. This creates persistent selling pressure, particularly if new demand fails to scale alongside supply growth.

Community feedback has reflected growing frustration, with many investors questioning the rationale behind the supply adjustment and its impact on long-term value capture.

Fundamentals vs Technicals

While technical levels may offer short-term opportunities, sustainable recovery depends on more than chart structure. Key factors that could influence VRA’s future include:

Clear and measurable token utility

Transparent communication around tokenomics

Restoration of confidence among long-term holders

Consistent ecosystem growth and adoption

Without progress on these fronts, technical bounces are more likely to be sold into rather than evolve into trend reversals.

Key Takeaway

VRA is currently at a crossroads. The chart presents a defined demand zone that could generate a relief reaction, but structural concerns around supply expansion and utility remain unresolved.

For traders, this is a zone to observe rather than assume. For long-term participants, fundamentals now matter more than historical price levels. Understanding the interaction between liquidity zones, tokenomics, and investor confidence is critical when evaluating assets at deep support.

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