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VIRTUAL’s latest price test – How can altcoin’s network activity play out?
January 19, 2025
The Virtuals Protocol (VIRTUAL) has reached a critical juncture, with the price testing significant Fibonacci support levels. Amidst the volatility, it is essential to examine on-chain metrics and network activity to better understand the token’s trajectory.
Recently, VIRTUAL’s price action hit $2.846, coinciding with the 0.5 Fibonacci retracement level at $2.638. The press time trading volume touched 483.7K VIRTUAL, indicating substantial market interest at these levels. Additionally, the 50-day moving average ($2.836) remained above the 200-day MA ($0.82711), allowing the altcoin to maintain a bullish structure despite recent corrections.
Despite a 14.17% price decline, Virtual’s network fundamentals have been strengthening throughout this consolidation phase. Daily active addresses demonstrated remarkable growth and sustained user engagement during the downturn. This divergence between VIRTUAL’s price action and network activity has historically preceded significant market movements.
Exchange flow dynamics further reinforced the narrative of strategic accumulation by larger players amid price dips. The frequency of outflow spikes since December hints at sophisticated market behavior, with controlled distribution instead of panic selling. Furthermore, inflow patterns indicate a lack of intense selling pressure, suggesting growing confidence in Virtual’s ecosystem.
The golden cross formation, where the 50-day moving average surpassed the 200-day MA, highlights the underlying strength in the longer-term trend. The Fibonacci retracement levels from its recent high provided crucial insights as well, with immediate resistance at $4.017 and robust support established at $2.022. This critical juncture may signal a potential turning point for VIRTUAL’s price trajectory.
The test of this level provides an opportunity to determine the authenticity of Virtual’s growing network activity and market dynamics. If successful in defending the 0.5 Fibonacci zone, it would likely mark the end of the ongoing correction phase and potentially pave the way for further growth.
In conclusion, Virtual’s market structure has matured and is now poised to support sustained growth.
Source: ambcrypto.com
