Key Takeaways
AI-themed cryptocurrencies seem to be gaining a lot of mindshare today. But it does not just end there as the prices of several ones have also climbed by significant figures.
Virtuals Protocol (VIRTUAL), is one of these tokens that has experienced a significant price upswing, driven by rising interest in AI infrastructure-based projects.
Interestingly, the price increase coincides with a key Donald Trump announcement involving the AI sector. Here is how the development could affect VIRTUAL’s price in the long run.
On Monday, Jan 20. VIRTUAL price was $2.55 after it had dropped from the all-time high it reached in the first week of the month. But today, the price is up by 15% following Donald Trump’s announcement of the $500 billion Stargate AI project.
According to the U.S. President, the initiative, which will focus on accelerating AI infrastructure in the country and globally, would involve firms like Sam Altman-led OpenAI , which it confirmed.
The President also disclosed that the project will involve other companies including Softbank and Oracle.
“Immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI and create over 100,000 American jobs,” Trump said in a meeting that included the CEOs of all three firms.
Following the development, VIRTUAL’s price surged to $2.94, reflecting a positive market response to the announcement.
In addition to the price increase, on-chain data reveals a rise in both active and new addresses on the Virtuals Protocol network. Active addresses represent the number of unique wallets engaging in transactions, indicating heightened activity on the network.
New addresses, on the other hand, measure the number of unique wallets completing their first transactions.
The rise in these metrics suggests growing interest around VIRTUAL and improved traction on the network. Should the network activity continue to climb, then VIRTUAL’s price might continue trending upwards, tightening the recent decline in the process.
From a technical perspective, the Chaikin Money Flow (CMF) on the daily chart has continued to hit new peaks. This was after the indicator’s reading lingered in the negative region up until the Trump announcement on Tuesday.
The CMF measures the flow of money into or out of a cryptocurrency. When the reading drops, it indicates a period of distribution or selling pressure.
But since it increased, it indicates that VIRTUAL is experiencing a rise in accumulation, with participants taking advantage to buy the dip. Should the buying pressure continues, then VIRTUAL’s price might rebound to the 0.618 Fibonacci level at $4.03.
In a highly bullish situation, the value could rise above the $5 mark. On the contrary, if the CMF reading drops and VIRTUAL slips below the 0.236 Fib level, it could face correction toward $2.22.