The cryptocurrency known as Virtuals Protocol [VIRTUAL] experienced an impressive 28.68% increase in its value within a 24-hour period, showing strong momentum that continued relentlessly. Market data from CoinMarketCap indicated a notable 102% surge in trading volume to reach $402 million during the same timeframe.
While numerous alternative digital currencies performed well on the 23rd of December, Virtuals Protocol stood out as a particular favorite among traders, edging closer to reaching new price levels despite the recent market volatility.
Predictions Point to Virtuals Protocol Prices Reaching $5.4
With a current market capitalization of $3.2 billion, Virtuals Protocol holds the potential for substantial growth during bullish market conditions. The token’s strong performance over the past week highlighted its resilience, even in the face of a broader market downturn.
Technical indicators, such as the on-balance volume (OBV) and relative strength index (RSI), painted a positive picture for Virtuals Protocol. The OBV demonstrated consistent upward momentum, signaling strong buying activity, while the RSI’s reading of 62 confirmed a bullish trend. However, the RSI displayed a potential bearish divergence in the short term, suggesting a temporary overextension of the market.
Should Virtuals Protocol manage to close a daily trading session above $2.95, it might signal a correction phase. Despite this, a significant retraction may not be immediate, with the token possibly aiming to cross the $3.32 mark before any substantial pullback occurs.
If demand for Virtuals Protocol remains robust, the likelihood of a sharp decline diminishes, as not all divergence patterns lead to significant price corrections.
Emphasis on Relative Strength as a Crucial Factor
December witnessed a downward trend in the altcoin market capitalization, excluding Ethereum (ETH), albeit showing signs of recovery on Monday. Despite the overall bearish outlook, Virtuals Protocol prices rose by a striking 90% compared to a 17% decline in the alt market cap over a seventeen-day period.
The exceptional relative strength exhibited by Virtuals Protocol hints at a promising outlook, underlining the potential for further value appreciation in the near future.
Disclaimer: The opinions expressed in this article are personal views and do not represent financial, investment, or trading advice.