Virtuals Protocol Price’s 105% Rally Could Be Facing A Reversal Soon

Virtuals Protocol (VIRTUAL) has seen a pointy rally over the previous few days, climbing to a two-month high. The token has surged on sturdy investor demand, doubling in worth in lower than per week. 

While the bullish momentum stays stable, technical indicators counsel {that a} short-term correction might emerge quickly.

Virtuals Protocol Could See Reversal

The Relative Strength Index (RSI) at present sits above 70, inserting VIRTUAL within the overbought zone. This signifies that income amongst holders are peaking, usually a precursor to short-term pullbacks. Traders might start securing good points, particularly after such a steep rise, probably resulting in gentle promoting strain within the close to time period.

Historically, when RSI stays prolonged for lengthy durations, it alerts that worth momentum has outpaced sustainable development. If buyers begin locking in income, the VIRTUAL price could temporarily stabilize or retrace earlier than resuming its uptrend.

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VIRTUAL’s correlation with Bitcoin is at present at 0.52, indicating a reasonable relationship between the 2 belongings. However, with Bitcoin recovering towards $115,000, this correlation might work in opposition to 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 pressure on the altcoin. 

VIRTUAL Price Jumps

At the time of writing, VIRTUAL trades at $1.50 after a 105% rise in simply 4 days. The token has received notable help from buyers. Strong on-chain exercise and buying and selling quantity proceed to help its present valuation.

However, based mostly on market situations, VIRTUAL might quickly face a short-term pullback. If promoting strain intensifies, the token would possibly fall beneath the $1.37 help degree, extending losses towards $1.14 and even decrease.

If buyers select to hold 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.

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