Virtuals Protocol (VIRTUAL) Faces Key Resistance After Initial AI-Driven Rally, As Investor Momentum and Engagement Slow

Virtuals Protocol (VIRTUAL) initially surged on strong institutional interest and technical momentum, largely driven by its inclusion in Grayscale’s Artificial Intelligence Crypto Sector Index and enhanced platform features like the ’TP Cooldown History’. The token broke key resistance levels, reaching intraday highs of $2.53 and achieved a market capitalization near $1.6 billion, reflecting significant bullish sentiment among traders focused on AI and altcoins. However, recent developments indicate a shift in market dynamics: VIRTUAL has rebounded 11% to $1.84, but on-chain data highlights a drop in new address creation to a six-week low, suggesting waning investor engagement. The Average Directional Index (ADX) remains slightly above 25, showing that while the uptrend persists, momentum is weakening. The $1.93 resistance is now pivotal; failure to break above it could see consolidation between $1.63 and $1.93 or a drop to the $1.50 support. Breaking through could target $2.00 and $2.45, signaling a possible bullish reversal if buying interest returns. Traders should closely monitor technical indicators and volumes to assess the strength of any move. Overall, Virtuals Protocol’s price action has transitioned from a strong bullish phase driven by institutional and technical catalysts to a more cautious outlook, with reduced momentum and participation now shaping short-term trading strategies.