VIRTUAL is the native token of the Virtuals Protocol, and the crypto market seems to be dancing on its toes on its explosive performance. From chalking up gains of over 30% in just 24 hours to recording an overall gain of 130% in the past seven days, the token is back at levels last seen in early February of this year.

Thus, the curiosity of whether VIRTUAL can break up to $2 in its rally towards $3 now arises with the renewed bull posture, strong technical indicators, and the confidence of traders. Let’s find out.

Why Is VIRTUAL Token Skyrocketing?

Several things have had a strong impact on making the price of VIRTUAL rise:

Binance Listing: VIRTUAL was recently listed on Binance, boosting its liquidity. This move also increases its market visibility for new investors.

The Genesis Launch Event:Virtuals Protocol’s Genesis event faced bumps but quickly recovered, restoring investor confidence through transparency and clear goals.

Perfect token supply dynamics: VIRTUAL has a total supply of 1 billion tokens with about 652 million circulating. This tight supply supports upward price momentum.

VIRTUAL Price Analysis: Bullish Momentum Confirmed

Following technical analysis, VIRTUAL’s price broke above a falling wedge formation on the daily chart, signifying an excellent bullish setup. The breakout above the upper trendline indicates a momentum reversal with signs that the current uptrend will gain momentum.

• RSI Reading at 88.68: The Relative Strength Index is currently at a high of 88.68, way above the overbought territory, indicating lots of buying action. This is definitely a good token bullish sign; however, traders should be wary of possible pullbacks or consolidation. 

• Key Resistance at $2.18: If buying pressure is maintained with momentum, it is very likely that VIRTUAL would reach a test of the $2.18 resistance before breaking through. A clean breakout could send this token flying toward an amazing $3.34 target, which also happens to be the 0.618 Fibonacci retracement level.

Can VIRTUAL Reach $3 or Higher?

With the current market condition and technical analysis to support it, the token can breach the $2 in short term. If volume continues to show strongly and the uptrend remains intact, we can see a midterm rally for $3.34.

As always, one should exercise caution. Buying pressure relents or market sentiment changes, VIRTUAL could slip back toward the $1 support zone, a vital level to watch.

Source: TradingView