Demand for artificial intelligent agents has jumped in the last few months, helped by the potential market size and the hype. VIRTUAL price soared and became the best-performing cryptocurrency in 2024. So, will the Virtuals Protocol token continue rising or will it suffer a strong 25% reversal soon? VIRTUAL Price Prediction: Faces Potential Downside Risks The VIRTUAL token had a strong year as it surged from $0.057 in September to over $5 this week, a 10,500% increase. This surge was primarily driven by its ecosystem growth , especially the performance of G.A.M.E, Luna, and aixbt. It also happened because of the AI agent theme in the crypto industry. The token faces potential risks that could lead it to more downside in the near term. For example, there are signs that it is forming a bearish divergence pattern on the daily chart. The Relative Strength Index (RSI) peaked in October and formed lower highs even as the coin surged. Similarly, the Percentage Price Oscillator (PPO), which is a modified MACD indicator, has formed a bearish divergence pattern. These divergences can often take a longer period to trigger a bearish breakout. Meanwhile, VIRTUAL price remains much higher than the 50-day and 100-day moving averages. That means that it may lead to a mean reversal, where an asset moves back to its recent averages. There are also signs that the coin is slowly forming a doji candlestick pattern. This pattern forms when an asset has a tiny body and long lower and upper shadows. It usually signifies that the asset opened and closed in the same price and is usually a reversal sign. The doji will be confirmed if the price ends the Additionally, VIRTUAL price may be approaching the distribution or markdown phase of the Wyckoff Method. It went through an accumulation phase for months last year, and then moved to the markup, a phase characterized by higher demand amid FOMO. The next phase will be distribution followed by a markdown. VIRTUAL Price Chart Virtuals Protocol Token Price Targets If the bearish thesis works out, it means that the VIRTUAL token will drop in the next few days. If this happens, the next potential target to focus on will be at $3.3327, the highest swing on December 16, which is about 25% below the current level, Such a move would trigger profit-taking, which will move it to the 50-day moving average at $2.26. On the flip side, the coin may benefit from the January Effect and the ongoing crypto and AI tokens demand. If that happens, the markup phase could continue for longer and see it almost doubling to $10. The post Ethereum AI Agent Token Virtual Price Hints 25% Crash appeared first on CoinGape .
