Date: Sat, June 21, 2025 | 03:30 PM GMT

The cryptocurrency market remains under pressure as heightened geopolitical tensions between Israel and Iran weigh heavily on investor sentiment. Ethereum (ETH) has retreated sharply from its monthly high of $2,877 to around $2,425, and this broad weakness is echoing across altcoins — including Virtuals Protocol (VIRTUAL).

Over the last seven days, $VIRTUAL has dropped by 21%, pushing its monthly losses to a steep 28%. But beneath the panic and red candles lies an encouraging technical setup — one that mirrors a past fractal seen in Chainlink (LINK) before it made a massive upside move.

Source: Coinmarketcap

Fractal Suggests Bullish Reversal Ahead

A detailed look at LINK’s 2024 performance shows it underwent a similar period of volatility. After forming a head-and-shoulders top and entering a prolonged downtrend, LINK eventually bottomed out in a demand zone between $8.50 and $9.00. It was here that the token showed early signs of strength — reclaiming the 100-day moving average and printing a bullish MACD crossover. This confluence led to an explosive 200%+ rally, sending LINK to $30 within a few months.

LINK and VIRTUAL Fractal Chart/Coinsprobe (Source: Tradingview)

Now, VIRTUAL seems to be replicating that exact setup.

Just like LINK, VIRTUAL has formed a head-and-shoulders top pattern and has broken down from it. It is currently approaching its key demand zone between $1.21 and $1.32 — an area where it previously found strong support. The current correction phase is also developing below the 100 MA, making it a critical area to watch for a potential reversal.

The fractal even suggests a similar consolidation-recovery phase could follow next, potentially driving VIRTUAL back toward the $2 mark if the pattern holds.

What’s Next for VIRTUAL?

If VIRTUAL holds the $1.21–$1.32 demand zone and shows signs of accumulation — especially with a reclaim of the 100 MA at around $1.82 — the fractal setup suggests a bullish reversal could be on the table. This could trigger a move toward $2.80–$3.00 in the short term, and possibly higher if overall market conditions improve.

However, with the broader market still under macro stress from global conflicts, investors should remain cautious. Technical confirmation — such as a bullish divergence or a moving average crossover — would be critical before taking positions based solely on this fractal.

Disclaimer: This article is for informational purposes only and not financial advice. Always do your own research before making any investment decisions.