What's Behind the VIRTUAL Price Increase? | Credit: Hameem Sarwar
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Key Takeaways
Virtuals (VIRTUAL) have increased by 70% since Jan. 13.
The price broke out from a descending resistance trend line.
Is the increase a relief rally or part of a bullish trend reversal?
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.
What’s Next for VIRTUAL?
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.
Despite its momentum, the increase could be a relief rally leading to another low. After VIRTUAL completes its correction, new highs are likely.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
