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Virtuals Protocol (VIRTUAL) has surged 11% to $1.84, yet weakening momentum and declining new addresses suggest waning investor enthusiasm.
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Resistance at $1.93 remains a critical barrier; failure to surpass it may result in price consolidation or a drop toward $1.50 support.
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According to COINOTAG, a breakout above $1.93 could propel VIRTUAL to $2.00, with $2.45 as the next significant resistance, indicating potential bullish reversal.
Virtuals Protocol rises 11% but faces weakening momentum and reduced new addresses; key resistance at $1.93 will determine if bullish reversal is possible.
Declining Investor Interest Challenges Virtuals Protocol’s Momentum
Virtuals Protocol’s recent price surge to $1.84 marks a notable recovery from the $1.63 support level. However, the altcoin is experiencing a significant decline in new addresses, reaching a month-and-a-half low. This reduction in fresh investor participation highlights a potential loss of market traction, which could undermine the sustainability of the recent price gains.
Technical indicators reinforce this cautious outlook. The Average Directional Index (ADX), a key momentum gauge, has sharply declined though it remains above the 25.0 threshold. This suggests that while the current trend retains some strength, it is vulnerable to reversal if momentum continues to weaken. The combination of declining new addresses and a falling ADX signals that Virtuals Protocol may face increased volatility or a shift toward consolidation in the near term.
VIRTUAL New Addresses. Source: Glassnode
VIRTUAL ADX. Source: TradingView
Technical Indicators Signal Possible Trend Shift
The ADX’s downward trajectory is a critical signal for traders monitoring Virtuals Protocol. While still above the 25.0 benchmark that indicates a strong trend, the risk of slipping below this level could herald a weakening uptrend or the onset of sideways price action. This technical nuance, combined with the drop in new investor addresses, suggests that the current bullish momentum may not be robust enough to sustain a prolonged rally without renewed buying interest.
Resistance at $1.93: The Crucial Test for VIRTUAL’s Price
Virtuals Protocol’s price currently confronts a key resistance level at $1.93. This price point represents a significant hurdle that must be overcome to maintain upward momentum. Failure to breach this resistance could result in a consolidation phase, where the price oscillates between the $1.63 support and $1.93 resistance levels.
Should selling pressure intensify, the price may break below the $1.63 support, potentially declining to $1.50 or lower. This scenario would indicate a bearish shift and could deter new investors from entering the market.
VIRTUAL Price Analysis. Source: TradingView
Potential Bullish Breakout and Future Price Targets
Conversely, if market sentiment improves and buying pressure strengthens, Virtuals Protocol could successfully breach the $1.93 resistance. Achieving this breakout would be a pivotal moment, potentially flipping the resistance into a new support level. This shift could pave the way for a rally toward the $2.00 mark, with $2.45 as the subsequent key resistance level.
Surpassing these levels would signal a reversal of the prevailing bearish outlook and may attract renewed investor interest, thereby fostering further price appreciation. Traders and investors should closely monitor volume and momentum indicators to gauge the strength of any breakout.
Conclusion
Virtuals Protocol’s recent 11% price increase reflects short-term optimism, yet the declining number of new addresses and weakening momentum present cautionary signals. The $1.93 resistance level remains a critical juncture that will likely dictate the altcoin’s near-term trajectory. While a successful breakout could initiate a bullish reversal targeting $2.00 and beyond, failure to overcome this barrier may lead to consolidation or a decline toward $1.50 support. Investors should remain vigilant, leveraging technical indicators and market sentiment to inform their strategies in this evolving landscape.
