The narrative surrounding AI agents propelled Virtual Protocols [VIRTUAL] to significant heights in November, yielding gains of more than 400%.
However, December ushered in a turbulent period as Bitcoin [BTC] struggled to maintain its position above $98,000, leading to a substantial sell-off that particularly impacted the AI sector.
The broader AI sub-sector experienced a significant decline of approximately 7% according to The Block’s AI token index, GMAI, with VIRTUAL also feeling the effects.
Predicting the Future Price of VIRTUAL
Despite its standing as a leading AI agent incubation and distribution platform on Base, the Virtual protocol’s utility token, VIRTUAL, continued its decline over the weekend.
This decline could be attributed to capital moving between sectors as AI agents dominated the market over the past couple of weeks. The question now arises: what lies ahead for this AI agent unicorn?
Examining the 12-hour price chart reveals VIRTUAL’s 11% drop impacting the bullish order block (OB), currently standing at $1.3.
Typically, bullish OBs act as support levels and might assist in triggering a recovery. In VIRTUAL’s case, the likelihood of maintaining $1.3 seemed bleak, reflected in the sharp decrease in OBV (On Balance Volume). This drop indicated a significant decline in trading volume (spot demand) that could weaken the chances of a robust price recovery.
If this trend persists, there is a possibility that the RSI may regress towards the median level before attempting a turnaround. In such a scenario, a price recovery could be confirmed by a reversal of the RSI around the 50-mark.
In essence, VIRTUAL might witness a further decline towards the golden zone of the 61.8% Fib level ($0.93-$1.11), especially if BTC falls below $95,000 once again.
Given the compelling narrative surrounding AI, each slump could present an opportunity for VIRTUAL investors to make discounted investments and for traders to enter into long positions.
Decline in Open Interest
The dip in VIRTUAL’s prices also coincided with diminishing market enthusiasm in the Futures sector.
Open Interest (OI) rates plummeted from $34 million to $25 million, representing a decline of nearly $10 million within two days. This decrease reinforced a bearish sentiment that could potentially shift if BTC targets the $100,000 level once more.
Disclaimer: The opinions expressed in this content do not serve as financial, investment, trading, or any other form of advice, but rather represent the author’s perspectives.