Virtual Protocol (VIRTUAL) has been on an impressive uptrend, setting multiple all-time highs (ATH) throughout December. The altcoin hit another ATH in the past 24 hours, climbing to $4.14.
However, this strong performance may face challenges as historical trends suggest potential price declines following significant rebounds.
Virtual protocol faces sale
Profits made for VIRTUAL holders have soared, indicating that investors are actively securing their gains. This behavior often follows a price surge as holders capitalize on their profits. While this demonstrates market confidence, it also increases downside risk as selling pressure tends to weaken the asset’s momentum.
The current uptrend has encouraged many VIRTUAL holders to take profits, a trend seen during previous price rallies. If this trend persists, the likelihood of a price pullback increases in the coming days. However, the extent of the decline will depend on overall market conditions and investor confidence.
VIRTUAL’s active addresses reached an all-time high, reflecting unprecedented participation in the network. The altcoin’s recent ATH attracted considerable attention, leading to increased activity among investors. This increased engagement highlights the growing interest in VIRTUAL and its potential for future growth.
Increased participation could counter some of the selling pressure, as strong investor interest supports price stability. The protocol’s sustained activity highlights its growing adoption, which could help mitigate the risk of a sharp drawdown. However, the continuation of this dynamic will depend on the balance between new demand and profit taking.
VIRTUAL Price Prediction: Another Incoming ATH
VIRTUAL is currently trading at $3.94, just below its ATH of $4.14, reached after a 17% rise in the last 24 hours. This rise has positioned VIRTUAL as one of the best performing players in the market, but mixed signals suggest caution in the near term.
The interaction of selling pressure and increased participation could result in a brief period of consolidation. VIRTUAL price may stabilize above $3.26 while struggling to break above $4.14. This range could serve as a benchmark for its next move, depending on market conditions.
If the bullish momentum strengthens, VIRTUAL could exceed its ATH and continue its upward trajectory. However, if profit-taking dominates, the price could fall below $3.26 or even go as low as $2.00 or lower. This scenario would invalidate the bullish outlook and shift sentiment toward caution.
Disclaimer
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