Despite maintaining its overall positive outlook, Virtuals Protocol [VIRTUAL] has experienced a significant decline from its peak of $5.25. The recent drop in value, particularly towards the critical $3 level, has raised concerns among potential buyers.
Recent Bearish Trend Emerges
Over the past ten days, Virtuals Protocol has witnessed a consistent downward trend, marked by only sporadic upticks. Although trading volume post-rally has diminished, the decline in value has been considerable.
Within the span of the last ten days, Virtuals Protocol has observed a decline of 37.81%, measured from the closing price on January 2nd, with a more significant 45% drop from the peak of $5.25. These figures indicate a notably bearish outlook for VIRTUAL.
Key support levels, including the 61.8% retracement level and the $3.03 mark, were breached, leaving the $2.45 range as a potential area for a bullish reversal to materialize.
While the MACD indicator reflects a growing bearish momentum in the short term, it remains above zero, implying that the long-term trend is not decisively bearish. Although the A/D indicator saw a minor decline in selling volume, it did not plummet significantly.
While current indicators suggest a short-term bearish sentiment, they also hint at a possible recovery when market sentiment shifts.
Further Downtrend Expected for VIRTUAL
Although the daily timeframe does not confirm a clear downtrend, lower timeframe charts indicate a series of descending lows and highs, setting up liquidation thresholds. Currently, the closest liquidity hotspots are at $2.77 and $3.55.
Therefore, the upcoming days will likely pivot around these levels, dictating the future trajectory of the Virtuals Protocol token. Given the prevailing bearish momentum, a potential drop towards $2.77 seems probable.
Disclaimer: The views expressed in this analysis are personal opinions and should not be considered as financial or investment advice.