VIRTUAL surges 86% then stalls — bulls must defend $1 or risk 27%-40% pullback
VIRTUAL token jumped 86% in early January, climbing from $0.642 to $1.198 before momentum cooled and price pulled back to about $0.975. The article flags $1 as a critical psychological level: a daily close below $1 would be bearish and could send VIRTUAL toward a 50% retracement target near $0.918 or a deeper retracement zone between $0.73–$0.76. Technical indicators (MACD, CMF) showed recent upward momentum and capital inflows, but on-chain metrics (Santiment’s dormant circulation and age consumed) signalled profit-taking and leftover imbalances from the rapid rally. Analysts note similarity to April 2025’s breakout that later reached $2.50 after breaching a descending trendline, suggesting upside is possible if demand returns. Recommended trader actions: watch $1 closely, consider longs on pullbacks into the $0.73–$0.76 demand zone, and treat $0.918 as the first key support. Disclosure: not financial advice.
Neutral
The report shows mixed signals. Short-term momentum produced an 86% rally, supported by MACD and CMF and sector-wide AI token gains, which can be bullish if renewed demand appears. However, on-chain metrics (dormant circulation, age consumed) and the observed profit-taking point to residual imbalances and a meaningful risk of deeper retracement. Key technical levels — $1 psychological support, $0.918 (50% retrace), and $0.73–$0.76 demand zone — frame clear trade rules. Historically, rapid breakouts often produce volatile follow-through: if buyers defend $1 and volume/flow metrics improve, continuation toward prior breakout targets is plausible (bullish). If $1 fails on a daily close, a 27–40% pullback to the $0.73–$0.76 zone is likely (bearish). For traders: treat this as a range-dependent setup—watch volume, daily close relative to $1, and whether capital inflows persist. Use defined stops and consider scaling into the $0.73–$0.76 demand zone rather than buying into a stalled rally.