VIRTUAL Soars 86%, Then Slumps-Traders Beware! 🚀💥

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VIRTUAL token, that paragon of volatility, soared 86% within the first week of January, ascending from $0.642 to $1.198. A spectacle of buying frenzy, it was as if the market had discovered the secret to eternal youth. 🧙‍♂️ However, after this remarkable crescendo, the altcoin found itself as lively as a dachshund in a library, with subdued demand and momentum. 🐾

At the time of writing, it was trading at $0.975. A daily session close below the $1 mark would not be a good sign for the bulls in the short term. A veritable catastrophe, one might say. 🧠

Crypto investor Gem Insider, that sage of the X-verse, noted in a post that the recent breakout bore similarities to the one from April 2025. Back then, a breach of a descending trendline saw a rally that reached $2.5. A feat akin to a penguin mastering ballet. 🐧

Will the current breakout achieve similar results? One can only hope, though the odds are as slim as a mathematician’s chance of winning a lottery. 🤔

VIRTUAL bulls’ defense of $1 could dictate the next move

The Virtuals Protocol [VIRTUAL] token saw a bullish start to the year, like many other altcoins. CoinMarketCap data showed that the AI sector expanded by over 20% in the first week of the month. A triumph of innovation, or perhaps just a case of the market suffering from a severe case of optimism. 🧠

VIRUTAL was not the only token whose performance exceeded expectations. A testament to the market’s penchant for drama, one might say. 🎭

Can it maintain the move? A question as old as time itself. 🕰️

The 50% retracement level of the impulse move would be the first test. If $0.918 is defended from the sellers, more upside and new highs would be highly likely. A thrilling prospect, though one might need a parachute. 🪂

The MACD and CMF showed upward momentum and strong capital inflows at the time of writing, an encouraging sight for investors. A ray of sunshine in a world of uncertainty. ☀️

The potential for a deeper VIRTUAL pullback

Santiment data showed that there were spikes in the dormant circulation and age consumed metrics. Two notable spikes in the past two weeks, on the 30th of December and the latest on the 8th of January. A mystery as deep as the Mariana Trench. 🌊

The former indicated a potential capitulation as the price sank toward new multi-month lows. The sudden turnaround to start the new year prompted a wave of profit-taking once the momentum began to slow down. A dance of greed and fear, as always. 🕺

Therefore, it appeared likely that further price expansion upward might face some difficulties, unless there is another wave of demand and a sentiment shift from investors. A gamble as risky as a tightrope walker with a penchant for champagne. 🥂

Traders’ call to action- Stick to the structure

The recent VIRTUAL rally left behind some imbalances on the 1-day timeframe. One of them aligned with the 78.6% Fibonacci retracement level, marking it as a strong demand zone. A beacon for the brave. 🌟

Hence, swing traders can wait for a price drop to $0.73-$0.76 to look to go long. The 1-day swing structure was bullish after the $1 supply zone was overcome earlier this month. A tale of two zones, if you will. 🧩

Final Thoughts

  • The Virtuals Protocol bulls might fail to defend the $1 psychological level if demand slows down. A fate as inevitable as the sunrise, though perhaps less cheerful. ☀️
  • A daily session close below $1 would likely see prices dip to $0.73-$0.76, which could mark the end of the retracement. A fitting conclusion, if one enjoys a good tragedy. 🎭

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2026-01-13 23:34