Virtuals Protocol has officially escaped its falling wedge | Credit: Veronica Cestari
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Key Takeaways
VIRTUAL has surged over 47% in the past week, reclaiming the $1 psychological level.
Technical indicators, including the CMF, confirm that the buying pressure backs the rally.
Analysis reveals that VIRTUAL’s price is likely to breach the upper level resistance soon.
Virtual Protocol (VIRTUAL) opened 2026 with a show of strength, surging more than 47% over the last seven days.
After weeks of compressed price action and persistent downside pressure, this sudden explosive signal rising demand and a clear shift in momentum.
With VIRTUAL reclaiming the $1 psychological level and technical indicators turning decisively bullish across multiple timeframes, attention now turns to whether this rally marks the start of a broader recovery that could push toward the $2 milestone.
Virtuals Protocol Sees High Demand
On the 4-hour chart, the Money Flow Index (MFI) highlights the breakout’s strength. The indicator sits deep in overbought territory at 90.91, reflecting aggressive capital rotation into VIRTUAL.
While such high readings often warn of near-term cooling or consolidation, they also confirm strong demand and buyer dominance. In trending markets, MFI can remain elevated for extended periods, especially after structural breakouts.
The Chaikin Money Flow (CMF) reinforces MFI’s bullish signal.
At 0.35, CMF indicates sustained capital inflows, confirming that the rally is supported by volume rather than thin liquidity.
Positive money flow at this level typically accompanies trend continuation, showing that buyers remain active even after the sharp upside expansion.
From a price structure perspective, VIRTUAL’s price has broken above the $1 psychological zone and now trades around $1.08. This level acts as immediate support.
Maintaining this level keeps the breakout intact and opens the door for continuation toward the $1.30 to $1.50 region, where prior supply could emerge.
OI Contradicts Market Sentiment
The derivatives chart indicates rising market optimism, with Open Interest (OI) increasing to 51.59%, signaling a notable influx of capital into leveraged positions.
This surge suggests traders are positioning for further upside, reinforcing the short-term bullish outlook.
This suggests that market participants are growing confident in VIRTUAL’s upside potential, with traders willing to take on additional risk in anticipation of a continuation move.
If VIRTUAL’s price breaks past resistance at $1.18, it could spike toward $1.73.
Still, Weighted Sentiment for VIRTUAL remains negative even as the price continues to rise.
In the crypto market, this divergence often acts as a bullish signal.
Historically, prices tend to move in the opposite direction of the broader “crowd” perception. When sentiment is overly pessimistic during a price climb, it suggests that the rally is not yet driven by retail euphoria or “FOMO.”
Instead, this negative sentiment suggests that many traders remain skeptical or are still on the sidelines.
Consequently, there is a lack of “dumb money” at the top, which usually precedes a crash.
Since the market has not yet reached a state of excitement, VIRTUAL’s price is likely to trade higher in the short term.
VIRTUAL Price Outlook: Altcoin Target $2
On the daily chart, Virtual Protocol has broken out of the falling wedge pattern and printed multiple green candles, signaling a gradual return of bullish momentum.
Technical indicators support this view. The Bull Bear Power (BBP) has flipped positive, indicating that buyers are gaining the upper hand over sellers after prolonged downside pressure. This shift often precedes short-term continuation as confidence rebuilds.
The Relative Strength Index (RSI) has moved past overbought territory and now sits at 73.69, reflecting intense short-term buying pressure.
While this confirms the move’s strength, it also signals caution. Historically, RSI readings above 70 often attract short-term profit-taking, particularly in markets that are still recovering from broader market weakness.
The Fibonacci retracement levels provide further context for VIRTUAL’s potential. Currently, VIRTUAL is pushing toward the 0.382 Fib level at $1.17, a key resistance zone that previously capped upside moves.
Breaking above this level could trigger a rally toward the next resistance at $1.71 before retesting $2. With VIRTUAL’s price moving strongly, the altcoin could attempt a continuation rally to $2.09.
However, failure to close above $1.18 would likely spark short-term profit-taking, especially given the overheated RSI.
In that case, price could pull back toward lower support around $0.63 as the market reassesses momentum.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
