On November 29th, Virtuals Protocol (VIRTUAL) reached a new record high of $1.42. Currently, the AI-based cryptocurrency is trading at $1.29, experiencing a 24-hour increase of 42%. Its market cap has also risen to $1.28 billion.
According to CoinMarketCap data, VIRTUAL’s trading volumes surged by over 100% in the past 24 hours, amounting to $166 million. This spike in volumes is likely attributed to its recent listing on the Bithumb exchange, where it can be traded with Korean Won pairs.
There has been a notable increase in whale interest in VIRTUAL over the last four days. As reported by Lookonchain, four whale addresses collectively purchased 5.87 million tokens within the past three days.
Given the heightened whale activity and trading volumes, which have propelled VIRTUAL’s outperformance in the cryptocurrency market, the question arises: Will this altcoin maintain its bullish momentum, or are we likely to see a reversal in the trend?
Positive Technical Indicators Point to Bullish Momentum
An analysis of VIRTUAL crypto’s four-hour chart indicates the strengthening of bullish trends, with the positive Directional Indicator (DI) surpassing the negative DI.
The significant gap between the positive DI and negative DI, in conjunction with the rising Average Directional Index (ADX), suggests a robust uptrend.
The Money Flow Index (MFI) currently stands at 85, indicating intense buying pressure and a potential scenario of overbought conditions for VIRTUAL. Traders should be vigilant for a decrease in the MFI, signaling the entry of sellers looking to secure profits.
If the current buying trend persists, VIRTUAL might surpass its previous all-time high and achieve new peaks. Conversely, a weakening uptrend could see critical support located at $1.04, potentially accelerating a downtrend if breached.
Significant Surge in VIRTUAL’s Open Interest
The derivative market has also played a contributing role in VIRTUAL’s recent gains. The altcoin’s open interest (OI) surged by 90% to $30 million, accompanied by a 171% increase in derivative trading volumes to $167 million.
The rising OI amid price advancements presents a positive signal, indicating that derivative traders are actively opening new positions in VIRTUAL. However, this surge could introduce heightened volatility into the market.
Liquidations tied to VIRTUAL rose to $634,000 within the last 24 hours, with $492,000 attributed to liquidated leveraged short positions. This forced buying activity may have further propelled the gains observed in VIRTUAL crypto.
AI-Based Cryptocurrencies Lead Market Growth
At present, the AI crypto sector has outperformed the broader market, witnessing an 18% surge in the total market capitalization of AI Agents cryptos to $7 billion according to CoinMarketCap.
VIRTUAL has climbed to become the second-largest AI Agent, trailing behind the Artificial SuperIntelligence Alliance (FET). Its increasing dominance in this sector hints at promising future gains for the token.