VIRTUAL Price on the Verge of a Breakout? 3 Bullish Signs Say “Yes”
Virtuals Protocol (VIRTUAL) has exploded almost 88% in the previous week however has since moved sideways close to $1.45. That may seem like a pause after a massive rally, however underneath the floor, a number of indicators are flashing bullish for the VIRTUAL value.
Three sturdy indicators present that the token could possibly be making ready for an additional leg up.
(*3*)Flag Pattern Holds Firm as Divergence Signals Strength: The First Bullish Sign
On the 12-hour chart, VIRTUAL is consolidating inside a bullish flag (pole and flag) sample, which kinds after a steep rally when merchants pause earlier than pushing increased. The sample is tightening close to the higher trendline, hinting that strain is constructing for a breakout.
Between October 28 and 30, the token’s value made a increased low, whereas the Relative Strength Index (RSI) made a decrease low. This phenomenon, termed hidden bullish divergence, occurred throughout the flag-based consolidation.
RSI measures shopping for versus promoting power. And in VIRTUAL’s case, it hints at bullish continuation. In brief, sellers are shedding management though value progress has slowed.
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If VIRTUAL breaks above the flag’s higher trendline, the setup might affirm a new uptrend. But the breakout hopes aren’t random, and we now have one other bullish signal subsequent.
Moving Averages Add Weight to the Breakout Case: The Second Sign
Adding to the bullish strain, the 50-period Exponential Moving Average (EMA) is about to cross above the 100-period EMA.
The EMA smooths out value knowledge to spotlight current momentum traits. When a shorter EMA crosses above a longer one, it usually marks the begin of a new bullish part.
This crossover comes proper as VIRTUAL’s price tests the higher flag boundary. It is a uncommon alignment that reinforces the breakout speculation. If each the EMA crossover and a shut above the higher trendline occur collectively, it might act as a double affirmation of power.
Smart Money Builds Positions Ahead of the VIRTUAL Price Move: The Third Sign
While retail merchants could be ready for clearer alerts, sensible cash — the time period used for knowledgeable or institutional traders — is already displaying its hand.
The Smart Money Index (SMI), which tracks the circulate of funds from knowledgeable merchants, has been trending increased since early October, regardless of a few dips alongside the method. The index has made increased highs constantly, at the same time as costs consolidate, suggesting quiet accumulation behind the scenes.
This enhance in sensible cash exercise usually precedes value growth, suggesting that massive gamers count on the flag to resolve increased.
If the VIRTUAL breakout above $1.60 holds, potential upside targets lie at $3.61 (per pole projection) and $3.92, based on Fibonacci projections. However, put up the breakout, VIRTUAL may discover the strongest resistance close to $1.97 (proper earlier than the psychological barrier of $2) and $2.95 (forward of $3).
That stated, if help at $1.37 adopted by $1.17 breaks, it might seemingly invalidate this setup. That would sign a longer consolidation part as a substitute.
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