The daily VIRTUAL chart illustrates the completed five-wave impulse in an uptrend that started in October and brought the price to an all-time high of $3.31.
The price has undergone a significant bullish trend of 7,800%, and after a pullback, it currently sits near the peak of the fifth wave.
VIRTUALUSD trades near all-time high | Credit: Nikola Lazic/TradingView
The daily chart’s Relative Strength Index (RSI) indicates potential overbought conditions, suggesting caution, although it has cooled off and is mostly trending down.
A slight bearish divergence appeared, hinting at diminishing momentum and a potential downturn.
The Fibonacci retracement levels provide support and resistance zones, highlighting potential areas for price correction.
The bullish momentum may slow as the price nears the 3.40 area, where sellers might emerge.
This wave pattern follows the Elliott Wave theory, with impulsive waves (1, 3, and 5) dominating and corrective waves (2 and 4) retracing.
The current phase might complete wave 5, implying a potential corrective phase soon. Monitoring RSI and volume trends will be crucial for further insights.
Key Observations:
The price has followed a classic five-wave Elliott Wave pattern.
Wave 5 is nearing the peak with potential resistance around 3.42 (0 level).
RSI indicates overbought conditions, hinting at a possible correction.
Virtual Price Prediction
Zooming into the hourly chart, we see a more detailed Elliott Wave count with potential corrective patterns unfolding after a strong, impulsive move. The labeled points suggest the completion of wave X, with a probable ABC corrective wave in progress. Fibonacci extension levels are crucial for identifying support and resistance zones.
VIRTUALUSD two scenarios in play | Credit: Nikola Lazic/TradingView
Its recent 40% rise came as the same length as the previous one and could be the C wave from the developed ABC upward as the second sub-wave from the higher degree WXY correction. If this is true, the price should immediately find resistance and decrease again, forming its third ABC.
The projected corrective wave targets significant retracement levels, including the 0.382 and 0.5 Fibonacci. Wave A may test the $2.20 region before a possible bounce to form wave B around $2.70. The larger correction (wave C) could extend to $1.70, aligning with deeper retracement levels.
RSI hints at a slight bearish divergence, suggesting weakening momentum. As the price progresses through the correction, the interaction with Fibonacci levels will indicate the next significant moves.
From the Dec. 20 low of $2, the price started another five-wave impulse instead of an upward ABC. The rise should proceed to the 1.618 Fib extension at $3.62.
Key Levels To Watch:
Wave X has been completed, and an ABC corrective wave may follow.
Wave A could test $2.20 (prior low).
Wave C correction may extend to $1.70 (0.5 Fib retracement levels).
The key resistance to watch is near $3.33 (1.272 Fibonacci extension).
Support levels to monitor: $2.56, $2.08, and $1.70.
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.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
