Key Takeaways
VIRTUAL increased by over 2,700% in 2024, reaching a new all-time high of $5.14 on the second day of 2025.
While the price could not maintain its momentum, falling by 60% in two weeks, it has regained its footing and recovered a large portion of its previous losses.
Nevertheless, the price trades are in a critical Fibonacci resistance area. Whether it breaks out or gets rejected determines whether the trend is bullish or bearish. Let’s examine the charts and see what is more likely.
The VIRTUAL price has fallen under a descending resistance trend line since its all-time high of $5.14 on Jan. 2, 2025. After a 60% decline, the price fell to a low of $2.22 on Jan. 13. It regained its footing and created successive bullish candlesticks.
VIRTUAL broke out from the descending resistance trend line during the upward movement, reaching a high of $4, a recovery of 70% since the lows. The breakout is a sign that the correction is over.
However, the price still trades inside the 0.5-0.618 Fibonacci retracement resistance levels at $3.67 – $4.02. Since this area often acts as the top in corrective movements, the trend cannot be considered bullish until the price closes above.
Technical indicators are showing preliminary bullish signs. The Relative Strength Index (RSI) crossed above 50, while the Moving Average Convergence/Divergence (MACD) has almost made a bullish cross.
If the VIRTUAL price closes above this Fibonacci resistance area, it will confirm that the upward movement is not a relief rally but rather the start of an increase that takes it to a new all-time high.
The long-term wave count shows that VIRTUAL is in wave four of a five-wave increase that started in July 2024 (white).
If the count is accurate, the ongoing increase is simply a relief rally since the wave four correction is too short relative to the length of wave three.
Technical indicators are showing weakness, supporting the count. The RSI generated a bearish divergence (green) and fell below 70. In addition, the MACD is falling and has nearly made a bearish cross.
While the RSI has started to create a hidden bullish divergence (yellow), this could continue once the price creates a lower low.
There are two potential paths for future trends. Since the VIRTUAL price decline is a three-wave structure, the ongoing relief rally can close the price to its highs.
The upward movement could be wave B in an A-B-C correction (yellow) or a symmetrical triangle (black), often created by wave four.
While the price would create a lower low in the first scenario, it would not do so in the second one, rather consolidating before an eventual breakout.
After the correction is over, VIRTUAL could increase toward a new all-time high, completing wave five in the process.
VIRTUAL showed resilience by regaining most of its losses from the correcting starting on Jan. 2.
Despite its momentum, the increase could be a relief rally leading to another low. After VIRTUAL completes its correction, new highs are likely.