VIRTUAL Price Cools Off After 330% Surge — Key Levels to Watch Next

Key Takeaways

• VIRTUAL was rejected at the $2.20 horizontal resistance area.
• The price has increased by over 300% since its April lows.
• How long will the VIRTUAL price correct before finding support?

Virtuals Protocol (VIRTUAL) has been one of the best-performing crypto assets since April.

However, the rally cooled slightly in May, finally showing some weakness.

With the price failing to break out from a critical resistance at $2.20, the main question is: Is the VIRTUAL rally over, and if so, where will the price find support?

Let’s find out.

VIRTUAL Price Reaches Resistance

The daily time frame VIRTUAL analysis shows that the price has increased rapidly since breaking from a resistance trend line in April.

The resistance had existed since the all-time high, so its breakout is a strong sign that the correction is over.

After an over 300% price increase, VIRTUAL reached a high of $2.21, well into the $2.20 horizontal resistance area, the final one before the all-time high.

However, the VIRTUAL price failed to break out, creating a lower high and a bearish candlestick today.

If confirmed, this could lead to a short-term retracement before the price resumes its ascent.

Technical indicators also show weakness. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bearish divergences.

All these signs point to a local top, suggesting the VIRTUAL price will first correct before possibly moving higher.

Let’s look at a lower time frame for possible levels of support.

Where Will it Find Support?

The shorter-term six-hour analysis shows that the VIRTUAL price completed a five-wave increase.

Wave three is extended, and the sub-wave count is in black.

If the count is accurate, Virtuals Protocol is in wave C of an A-B-C correction (red), and the coin could fall to $1.53 or $1.32.

If waves A and C have the same length, the correction will end at a low of $1.53.

However, if wave C extends and has 1.61 times the length of wave A, the price will reach the $1.32 target.

Since the target is a Fibonacci and horizontal support area, the VIRTUAL price is unlikely to fall below it.

Doing so will put the entire bullish structure at risk and could lead to new lows.

Final Leg of the Correction

The VIRTUAL price increased by 330% after April 7, culminating with a high of $2.21.

The rally has cooled off, and the price might be temporarily retracing.

If so, the closest support levels are $1.53 and $1.32, respectively.