Virtuals Protocol (VIRTUAL) has surged past the $2 mark once again, demonstrating strong resilience after a brief pullback. The token's price increased by 15% in a single day, dismissing concerns about a deeper correction and signaling potential for further gains.
Technical indicators and on-chain data both suggest that the rally may be far from over. Key metrics show renewed accumulation, bullish momentum, and a significant rise in network activity. This article breaks down the factors driving VIRTUAL’s performance and what traders might expect next.
Technical Analysis Points to Continued Strength
VIRTUAL’s daily chart reveals a U-shaped recovery pattern that began in April. The token is now testing a crucial resistance level at $2.22, which also serves as the neckline of this formation.
The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure, has remained above the zero line. This suggests that accumulation is ongoing and selling pressure has not taken over. A sustained CMF reading often precedes extended upward moves.
In this case, if buying pressure continues, VIRTUAL could break through resistance and target the $3 price level.
On-Chain Metrics Support Bullish Outlook
Beyond technicals, on-chain data provides additional reasons for optimism. The Price-Daily Active Addresses (DAA) divergence metric has surged by nearly 400% over the past week.
This metric assesses whether network activity aligns with price movement. A positive divergence indicates growing user engagement, which often leads to continued price appreciation.
The recent spike suggests that user activity is expanding rapidly, supporting the case for further gains. For those interested in tracking such metrics in real-time, 👉 explore advanced on-chain tools can provide valuable insights.
Short-Term Price Targets and Key Levels
The Bull Bear Power (BBP) indicator also supports a bullish near-term view. This tool compares the strength of buyers and sellers, with readings above zero indicating bull dominance.
Recently, the BBP has consistently shown green histogram bars, signaling that buyers are in control. As long as this persists, VIRTUAL may challenge resistance at $2.81 and possibly extend toward $3.38.
However, if the token fails to break above $2.24, a pullback toward $1.44 could occur. Traders should monitor these levels closely.
Frequently Asked Questions
What is Virtuals Protocol (VIRTUAL)?
Virtuals Protocol is a cryptocurrency project that has gained attention for its recent price performance and growing network activity. It aims to provide decentralized solutions within its ecosystem.
Why did VIRTUAL’s price surge recently?
The price increase was driven by a combination of technical recovery patterns, increased accumulation, and a sharp rise in daily active addresses, indicating heightened user engagement.
What does the CMF indicator show for VIRTUAL?
The Chaikin Money Flow indicator has remained positive, suggesting that buying pressure is outweighing selling pressure. This often supports further price increases.
How does Price-DAA divergence affect price?
A positive Price-DAA divergence signals that network growth is supporting price gains. In VIRTUAL’s case, a 400% surge in this metric indicates strong fundamental momentum.
What are the key resistance levels for VIRTUAL?
Immediate resistance is near $2.24, followed by $2.81. A break above these could open the path to higher targets, including $3 and beyond.
What is the risk if VIRTUAL fails to hold $2?
If the token loses momentum and falls below key support, it could retreat toward the $1.44 level. Traders should use stop-loss orders and manage risk accordingly.
Conclusion
Virtuals Protocol (VIRTUAL) has shown impressive strength by reclaiming the $2 level and exhibiting bullish signals across multiple indicators. While short-term volatility is always possible, the combination of technical and on-chain data suggests that the uptrend may continue.
Investors and traders should keep an eye on critical resistance and support levels, and consider using reliable analysis tools. For those looking to deepen their market analysis, 👉 access professional trading resources can be a practical step.
As always, market participants should conduct their own research and consider their risk tolerance before making investment decisions.