VIRTUAL eyes $1.33 — key $0.758 support signals buy opportunity
VIRTUAL (VIRTUAL) fell ~15.7% over the past week amid weakness in crypto AI tokens, but technicals suggest a buying opportunity if key support holds. After an early-January breakout above multi-month swing levels ($0.73 and $1.05), VIRTUAL retraced toward the 78.6% Fibonacci level at $0.758 and established a short-term range near $0.80–$0.88. Short-term momentum is bearish: price sits below the 20- and 50-day moving averages and the Chaikin Money Flow (CMF) dropped below -0.05, while Glassnode shows net positive exchange inflows (7DMA) over six months—indicating holders have been sending tokens to exchanges. The article’s trading stance: maintain bullish bias unless $0.758 is decisively broken, with upside targets at $1.19 and $1.33. Risk reminder: this is opinion, not financial advice.
Bullish
The article frames VIRTUAL as structurally bullish because it completed a breakout in early January above key swing levels ($0.73 and $1.05). The 78.6% Fibonacci retracement at $0.758 is identified as the critical support: as long as price holds above this level, swing traders can retain a bullish bias targeting $1.19 and $1.33. Short-term bearish signals (price below 20/50-day MAs, CMF < -0.05, and net exchange inflows) increase downside risk and may pressure price in the near term, but they do not invalidate the breakout unless the $0.758 level is decisively lost. This mirrors past patterns where post-breakout retracements to strong Fibonacci or demand zones presented higher-probability entries (buy-the-dip) and eventually resumed upward movement if on-chain outflows reversed. For traders: expect increased volatility; short-term bears may push toward $0.75–$0.80, offering potential entries for position traders who set tight stops below $0.758. If $0.758 breaks with sustained exchange inflows and momentum, the bias would flip bearish and targets would shift lower. Therefore the net impact is modestly bullish with clear conditional levels to manage risk.