- VIRTUAL fell more than 30% after an impressive rally in November.
- What are the chances of price recovery for the AI token?
Created the story of the AI agent Virtual protocols [VIRTUAL] an immediate hit in November, with a gain of more than 400%.
However, December started on a rough patch as Bitcoin [BTC] struggled to stay above $98,000, leading to a massive sell-off that hit the AI segment the hardest.
The broader AI subsector fell almost 7% on the daily charts, according to The Block’s AI token index, GMAI. VIRTUAL was not spared.
Source: Het Blok
VIRTUAL price prediction
Despite leading the way as an incubation and distribution platform for AI agents on Base, VIRTUAL, the virtual protocol’s utility token, extended its decline over the weekend.
This can also be attributed to capital rotation across sectors after AI agents dominated the segment over the past two weeks. But what’s next for the AI agent unicorn?
Source: VIRTUAL/USDT, TradingView
On the 12-hour price chart, VIRTUAL’s 11% decline hit the bullish order block (OB), white at $1.3. Normally, the bullish OBs act as support and can help spark a recovery.
In the case of VIRTUAL, the chances of holding $1.3 were slim given the sharp drop in OBV (On Balance Volume). It meant that trading volume (spot demand) had fallen dramatically and could undermine a strong price recovery prospect.
If so, even the RSI could retreat to the median level before attempting a reversal. In such a scenario, a price recovery could be confirmed by a reversal of the RSI near the 50 mark.
In short, VIRTUAL could extend its decline into the gold zone of 61.8% Fib level ($0.93-$1.11), especially if BTC falls back below $95K.
Given the strong AI story, any dip could offer a discounted scoop for VIRTUAL investors and a long position for traders.
Open interest slides
Source: Coinglass
Read Virtual protocol [VIRTUAL] Price prediction 2024-2025
VIRTUAL’s price decline was also marked by reduced market interest in the Futures segment.
Open Interest (OI) rates fell from $34 million to $25 million, a drop of almost $10 million in two days. This reinforced bearish sentiment that could change if BTC sees $100,000 again.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer