Virtuals Protocol (VIRTUAL) has seen a pointy rally over the previous few days, climbing to a two-month excessive. The token has surged on sturdy investor demand, doubling in worth in lower than every week.
Whereas the bullish momentum stays strong, technical indicators counsel {that a} short-term correction might emerge quickly.
Virtuals Protocol Might See Reversal
The Relative Power Index (RSI) at present sits above 70, putting VIRTUAL within the overbought zone. This means that earnings amongst holders are peaking, usually a precursor to short-term pullbacks. Merchants might start securing good points, particularly after such a steep rise, probably resulting in delicate promoting stress within the close to time period.
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Traditionally, when RSI stays prolonged for lengthy intervals, it indicators that value momentum has outpaced sustainable development. If buyers begin locking in earnings, the VIRTUAL value might quickly stabilize or retrace earlier than resuming its uptrend.
VIRTUAL RSI. Supply: TradingView
VIRTUAL’s correlation with Bitcoin is at present at 0.52, indicating a average relationship between the 2 property. Nonetheless, with Bitcoin recovering towards $115,000, this correlation might work towards VIRTUAL if it fails to reflect BTC’s power.
If Bitcoin’s momentum stays optimistic whereas VIRTUAL lags, merchants might rotate capital again into the main cryptocurrency. This shift would enhance promoting stress on the altcoin.
VIRTUAL Worth Jumps
On the time of writing, VIRTUAL trades at $1.50 after a 105% rise in simply 4 days. The token has acquired notable help from buyers. Sturdy on-chain exercise and buying and selling quantity proceed to help its present valuation.
Nonetheless, primarily based on market situations, VIRTUAL might quickly face a short-term pullback. If promoting stress intensifies, the token may fall beneath the $1.37 help stage, extending losses towards $1.14 and even decrease.
If buyers select to carry their positions, VIRTUAL might keep its momentum. A sustained rally above $1.54 might push the token towards $1.65 and even $2.00. Breaking this barrier would invalidate the bearish outlook.
