The AI Agent trend has gained new momentum alongside fresh retail liquidity, boosting Virtuals Protocol to a 20% weekly gain as the altcoin of choice.
Better-than-expected US inflation data and a US-China trade agreement have revived risk-on sentiment, clearing the market headwinds that have left most coins stagnant.
To its credit, VIRTUAL has proven among the best cryptos to buy amid economic-driven market FUD—now up 350% since the mid-April market bottom.
According to a Dune Analytics dashboard, AI agents have led the market revival over the past week, posting a net 58% price growth.
Crypto narrative gains over the past 7 days. Source: Dune Analytics.Notably, they are one of only two narratives maintaining gains over the past 24 hours, up 15%. Web-3 gaming trails with just 0.25% growth, while all other narratives see losses.
The Virtuals Protocol price flight may be facing turbulence as momentum shows its first cracks.
The weekly surge has been snubbed at $2.20 resistance as the uptrend finds itself increasingly suppressed as it battles overbought conditions.
VIRTUAL / USDT 1-day chart, cup-and-handle formation. Source: TradingView / Crypto.The RSI, which hovered above the overbought threshold at 70 through May, has now retraced to the 60s—a sign of fading buying pressure.
The concern is that the recent rise may have been too much, too fast. A wave of profit taking may be the next step to find level footing closer to a neutral 50.
This cautious outlook is reinforced by the MACD line, which has formed a death cross on the daily, falling below the signal line.
While this has not proven damning in the past, it has marked the start of correction periods for VIRTUAL. A retest of past strong support at the 20SMA could be the next target—a 12% decline from current levels.
Zooming out, the uptrend appears unlikely to be fully derailed.
The weekly MACD has formed a golden cross, surpassing the signal line for the first time since the post-election rally—an early indicator of a longer-term bullish trend.
More so, this price rise could be the early onset of a cup-and-handle pattern. The neckline peak lies 170% higher at $5.10. While $10 is a reach for now, Virtuals Protocol appears to be on the right path.
The altcoin market is pumping right now, and those who back the wrong horse are missing out on substantial gains as most coins loom far below their highs just five months ago.
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