Virtuals Protocol (VIRTUAL) has surged 155% in a week, breaking past key resistance levels due to heightened demand.
A bullish market structure shift occurred on April 25, leading to a 56% additional rally.
Indicators like the Money Flow Index (MFI) and Chaikin Money Flow (CMF) suggest strong bullish momentum, with significant capital inflows.
A bearish divergence on the 4-hour chart hints at a potential short-term pullback to $1.22 or $1.06.
Long-term resistance levels are identified at $2 and $2.4, with $1.6 being a critical support level for future growth.
Liquidity heatmaps indicate $1.55-$1.58 as a key zone, likely attracting prices upward before a potential rejection.
The Meteoric Rise of VIRTUAL: A Week of Unprecedented Gains
Virtuals Protocol (VIRTUAL) has captured the attention of the market with an extraordinary 155% rally over the past week. This surge has been fueled by robust demand, propelling the token past significant resistance levels and signaling the potential for further gains.
The bullish momentum began on April 25, marking a pivotal shift in the market structure. Since then, VIRTUAL has climbed an additional 56%, showcasing its resilience and investor confidence. This rally has not only broken through previous barriers but has also set the stage for a new wave of market activity.
Indicators of Strength: MFI and CMF Signal Bullish Momentum
The Money Flow Index (MFI), a key indicator of market strength, currently sits at an impressive 89, reflecting strong bullish conditions. Despite this, no bearish divergence has been observed on the daily timeframe, suggesting that the upward momentum remains intact.
Similarly, the Chaikin Money Flow (CMF) indicator, with a reading of +0.18, highlights substantial capital inflows into the VIRTUAL market. This aligns with the Accumulation/Distribution (A/D) indicator, which has shown a steady upward trend throughout April, further confirming increased buying pressure.
Resistance Levels and the Path Forward
From January to March, VIRTUAL experienced a downtrend characterized by a series of lower highs. These levels were previously marked as potential resistance zones. However, the recent rally has seen the token decisively break through the $1.21 and $1.41 levels, signaling a shift in market sentiment.
On the 4-hour chart, a bearish divergence has emerged, with the MFI forming lower highs while the price continues to make higher highs. This divergence suggests a potential short-term pullback, with support levels identified at $1.22 and $1.06. Despite this, other technical indicators, such as the A/D and CMF, indicate that buying pressure remains strong, suggesting any pullback will likely be shallow and followed by a swift recovery.
Liquidity Zones and Future Price Targets
A closer look at the 3-month liquidation heatmap reveals the $1.55-$1.58 range as a critical liquidity zone. This area is expected to act as a magnet for prices, potentially driving VIRTUAL higher before encountering significant resistance.
Traders are advised to exercise caution when interpreting the bearish divergence on the MFI. Instead of shorting the token immediately, it may be prudent to wait for a clearer signal. To the downside, the $1.36 level represents another notable liquidity pocket that could be tested in the coming days.
For long-term investors, a flip of the $1.6 level into support would present an attractive buying opportunity. Beyond this, the next major resistance levels are projected at $2 and $2.4, offering significant upside potential for those willing to hold through short-term fluctuations.
Conclusion
Virtuals Protocol has demonstrated remarkable strength, rallying 155% in just a week and breaking through key resistance levels. While short-term indicators suggest a potential pullback, the overall market structure remains bullish, supported by strong capital inflows and robust buying pressure.
For traders, the $1.55-$1.58 liquidity zone offers a critical area to watch, while long-term investors should focus on the $1.6 level as a potential entry point. With resistance levels at $2 and $2.4 on the horizon, VIRTUAL’s upward trajectory appears far from over, making it a compelling asset to monitor in the coming weeks.
