At the beginning of this month, the price of Virtuals Protocol was set at $3.92212. Recently, the VIRTUAL price soared to an unprecedented high of $5.25692. However, the market’s momentum did not last, leading to a decline of at least 10.6% in the last 24 hours. This article delves into the factors behind this sharp correction and explores what the future holds for VIRTUAL. Ready to explore? Let’s dive in!
VIRTUAL Surpasses the $5 Price Milestone
The AI coins market has witnessed a substantial growth of 6% in the past 24 hours. Over the last week, nearly all leading AI tokens, including Virtuals Protocol, have shown promising growth. Tokens like NEAR Protocol increased by 5.0%, Internet Computer grew by 3.4%, Bittensor surged by 8.9%, and Render rose by 2.4%. Among these, Virtuals Protocol stands out with the highest 7-day growth of 34.7%, reaching an all-time high (ATH) of $5.25692 just yesterday. Despite this achievement, the Virtuals Protocol market has faced a decline of nearly 10.6% in the last 24 hours.
Profit-Taking Intensifies Selling Pressure
The market correction seems to be driven by significant profit-taking activities among VIRTUAL holders. According to reports, these holders have collectively realized profits amounting to no less than $28 million. This profit-taking has contributed to the downward pressure on the VIRTUAL price.
Technical Indicators Signaled Overbought Conditions
On December 31, 2024, the Relative Strength Index (RSI) for VIRTUAL entered the overbought territory. By January 1, it had peaked at 76.86, indicating a potential market reversal. Additionally, reports highlighted that the Supertrend indicator marked resistance at the $5.15 level, suggesting caution for investors.
Exploring Future Scenarios for VIRTUAL
Market experts suggest that if Virtuals Protocol manages to break through the resistance level of $5.15, the price could potentially soar to $7. Conversely, if the resistance holds strong, the price might drop to as low as $3.85. The impressive performance of AI tokens like Virtuals Protocol offers a glimpse of optimism for the AI tokens market’s future in 2025.
In conclusion, while the recent fluctuations in Virtuals Protocol may cause concern among investors, the overall outlook for AI tokens remains promising. As the market continues to evolve, staying informed and vigilant will be key for navigating these changes effectively.
