Potential for VIRTUAL's price to hit $3.3 amid approaching golden cross signal?
Virtuals Protocol Witnesses a 19% Surge, Bolstered by Strengthening Technicals and Rising Institutional Interest
On Wednesday, May 28, during afternoon trading in Asia, Virtuals Protocol (VIRTUAL) experienced a 19% increase, reaching an intraday high of $2.53. This surge pushed the token's market cap near $1.6 billion.
The token has risen by more than 500% from its year-to-date low, demonstrating a substantial surge in investor interest. One influential factor fueling this rally is Grayscale's recent announcement of adding VIRTUAL to its newly launched Artificial Intelligence Crypto Sector Index. This index, consisting of 20 AI-focused tokens, aims to track the top performers in the AI and crypto sectors. VIRTUAL's inclusion signifies growing institutional recognition of its significant role in the AI and crypto space.
The anticipated upcoming NVIDIA earnings report also serves as a catalyst, which is generating buzz across markets. Analysts anticipate NVIDIA's Q1 revenue will rise by 65% to approximately $43.17 billion, with earnings per share anticipated to climb from $0.61 to $0.73. The company's Q2 revenue guidance is expected to hit $45 billion. Since NVIDIA is a major player in AI hardware, a strong report could further enhance sentiment around AI-related tokens such as VIRTUAL.
Adding to the optimistic outlook, Virtuals Protocol recently launched a new feature called TP Cooldown History. This update is part of the Genesis system and offers users (known as "Virgens") increased transparency regarding their cooldown periods and points, helping them understand the impact of specific actions like selling Genesis agents on their cooldown times and points.
From a technical analysis perspective, VIRTUAL is revealing bullish signals. The token formed a bullish engulfing candle on Tuesday's daily chart, confirming a U-shaped recovery since the April correction. Crucially, VIRTUAL broke above the $2.22 resistance, which also served as the neckline of a cup-like pattern. Following this, VIRTUAL broke through the upper boundary of an ascending triangle, a pattern often anticipating a potential upward breakout.
Momentum indicators support the bullish case, with the MACD line having crossed above the signal line, illustrating ongoing buying strength. Moreover, the price has already surpassed both the 50-day and 200-day moving averages, with these averages approaching the coveted golden cross, a classic bullish signal, while the Relative Strength Index continues its upward trend, indicating strong buying pressure.
If bulls maintain control, VIRTUAL could then target $2.78, a level corresponding with the 50% Fibonacci retracement. A breakout beyond $2.78 could pave the way for $3.38, which aligns with the 0.382 Fibonacci level, representing a gain of more than 38% from the current price. However, if sellers counter the rally from $2.78, the price might retest $2.22, which now serves as a crucial support level and also lines up with the 78.6% Fibonacci retracement level.
Although the outlook is optimistic, risks persist. For instance, if market sentiment turns negative or key resistance levels are rejected, the price could plummet sharply. Some analysts project a potential bearish price as low as $0.87 in 2025. Additionally, previous rapid gains have been followed by steep corrections, meaning there's still room for volatility.
- The surge in Virtuals Protocol's token price, reaching an intraday high of $2.53, is being attributed to a mix of strengthening technicals, rising institutional interest, and the upcoming NVIDIA earnings report.
- The addition of VIRTUAL to Grayscale's Artificial Intelligence Crypto Sector Index, consisting of 20 AI-focused tokens, underlines the growing institutional recognition of its significance in the AI and crypto space.
- Recently, Virtuals Protocol launched a new feature called TP Cooldown History, which provides increased transparency for users regarding their cooldown periods and points.
- From a technical perspective, VIRTUAL's bullish signals include breaking above key resistance levels, having crossed above the MACD line, and approaching the coveted golden cross while the Relative Strength Index continues its upward trend.
