VIRTUAL Token Surges 86% and Then Stalls – Traders Should Monitor This Closely

Summary: The VIRTUAL token experienced an impressive surge of 86% in early January, climbing from $0.642 to $1.198. However, interest in the altcoin has waned, with its current trading price hovering around $0.975. A drop below the $1 threshold could signal trouble for bullish investors. Analysts recommend observing key price levels and market momentum closely, particularly as the AI sector shows strength.

Key Takeaways

VIRTUAL token's price jumped 86% in early January but has since declined.
Currently trading around $0.975; closing under $1 may forecast bearish trends.
Historical patterns suggest the potential for price increases if certain support levels are maintained.
Recent spikes in dormant circulation indicate possible profit-taking and a cautious market sentiment.
Traders are advised to watch key Fibonacci levels and consider entering positions at strategic price points.

VIRTUAL momentum softens following AI sector’s early January surge

VIRTUAL Token's Early January Surge

The VIRTUAL token had an impressive start to January, climbing 86% from $0.642 to $1.198. However, after this significant buying frenzy, demand seems to have softened. As of now, the token trades at approximately $0.975. A daily close below the critical $1 level would likely be detrimental for bulls in the near future.

VIRTUAL Gem Insider

Source: Gem Insider on X

Notable crypto investor, Gem Insider, drew parallels between this breakout and a similar event from April 2025. During that time, breaking past a descending trendline led to substantial gains, with prices reaching $2.5. Will this new breakout follow a similar path?

Defending the $1 Level: A Bull's Strategy

The VIRTUAL token mirrors the bullish trends seen in many altcoins this year. Data from CoinMarketCap indicates that the AI sector has posted over a 20% increase in the first week of January. VIRTUAL has also outperformed other tokens in this timeframe.

VIRTUAL 1-day Chart

Source: VIRTUAL/USDT on TradingView

Maintaining its upward trajectory will require defending the 50% retracement level. If the price holds above $0.918, investors can expect further bullish movement and potentially new highs. Encouraging indicators such as MACD and CMF indicated positive momentum and strong capital inflows, fostering investor confidence.

Potential for Deeper Price Corrections

VIRTUAL Santiment

Source: Santiment

According to Santiment, there have been significant spikes in dormant circulation and age consumed metrics recently, specifically on December 30 and January 8. The first of these spikes suggested a potential capitulation as prices fell to lower multi-month levels. The new year’s surge initiated a profit-taking phase after momentum began to wane.

Thus, it’s possible that further upward movement in price may encounter challenges unless driven by additional demand and a shift in investor sentiment.

Traders’ Strategy: Maintain Market Structure

The recent rally of VIRTUAL has left behind some imbalances on the 1-day timeframe, notably aligning with the critical 78.6% Fibonacci retracement level, identifying it as a strong demand zone. Therefore, swing traders may consider timing their entries by waiting for a price correction to the $0.73-$0.76 range to establish long positions. Currently, the 1-day swing structure remains bullish after overcoming the $1 supply zone earlier in the month.

Final Thoughts

Disclaimer: The information provided is not financial, investment, or trading advice and is solely the writer’s perspective.