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Virtual Protocol token, VIRTUAL, drops 16%: is the bullish momentum over?
In a sudden and unexpected turn of events, the Virtual Protocol token (VIRTUAL) has experienced a significant price drop of around 16%, wiping out a substantial portion of its recent gains. This dramatic correction raises concerns about whether the bullish momentum that drove the asset’s meteoric rise is indeed over.
According to market analysts, this sharp decline can largely be attributed to profit-taking and a market cool-off after a prolonged bull run. The token had entered an overbought region according to the 14-Day Relative Strength Index (RSI), which had risen to above 83 on December 16. This overbought condition often signals that a correction or consolidation phase is due, prompting traders to take profits and potentially leading to a price drop as supply catches up with demand.
Although the RSI has since dropped to around 71.36, it still suggests that the market remains overbought and could see further declines before stabilizing. This pullback is not uncommon in the crypto market, where rapid price increases can lead to significant corrections.
While this sudden downturn may be disappointing for some investors, it also presents an opportunity for new entrants to join the fray at a potentially more favorable entry point.
Source: coinjournal.net
