Virtual Protocol token virtual falls by 16 %: Is the upward dynamics over?
Virtual Protocol token virtual falls by 16 %: Is the upward dynamics over?
- The drop in the price of virtual by 16 % follows a bull rally that was promoted by the hype about AI agents and the listing on large stock exchanges.
- The decline is due to profit -taking and an overbought market condition, as the RSI shows.
- This decline could offer a purchase opportunity for new investors.
In a surprising turn of the events, the Virtual Protocol token recorded a remarkable decline of 16 % in the past 24 hours and fell to $ 2.60.
This market cooling follows a dramatic bull rally, in which virtual on December 16, 2024 rose.
The decline raises the question of whether the upward trend is over or whether it is only a temporary setback in a larger trend.
What has Virtuals Protocol (virtual) have reached a new high?
Before we deal with the question of whether the decline in the end of the upward dynamics indicates, it would be important to first understand what is behind the latest rally.
The latest price increase from virtual can be traced back to a number of bullish catalysts and a wider market trend.
Firstly, Virtuals Protocol, a project for artificial intelligence and meta-verses, has become less important as one of the hottest assets on the cryptom market, especially in view of the rise of AI agents and AI-based autonomous software. The focus of the project on co-ownership for AI agents who enables users to create or use existing tokens has attracted great attention and led to an increase in demand for virtual tokens and a corresponding price increase.In addition, the excitement about the launchpad functionality of the Protocol virtual, which enables users to create AI agents and associated tokens, has increased the hype. The growth of AI-based interactions, as shown by viral success stories such as "Terminal of Truths" on X, contributed to the broad acceptance of virtual.
AI agents have become a new border in the cryptor compartment, whereby the value of the corresponding token is increasing, since the market experiences a massive and viral interaction with protocols, apps and other AI agents.
Secondly, the rally started in early December 2024 and fell together with important developments within the ecosystem.AI agent on Solana 🤖
The Ai Agent-Ecosystem on = "Nofollow Noopener" Target = "_ Blank" href = "https://twitter.com/solana?ref_src=twsrc%5etfw"> @Solana flourishes with outstanding projects such as #ai16z , #Virtual and more. 🌐
with a market capitalization of over $ 10 billion fuses ai agent #defi and #KI what the way for the automation. This is only the beginning.
On December 11, Okx, one of the leading crypto exchanges, announced the listing of Virtual/USDT Perpetual Futures, which increased the liquidity and accessibility for dealers. Shortly afterwards, Hyperliquid followed, a decentralized trading platform of layer 1, which supports virtual and enables trade with up to 5 times leverage.
also Binance, the largest crypto exchange in the world in volume, joined this trend and added support for the virtual futures trade.
These notations offered investors additional opportunities to participate in virtual, which increased the demand and drove the price of the token considerably up.
Why does the virtual price drop? Is the rally over?
The current virtual drop in price is largely due to profit from and a market cooling after a longer bull market.
According to the 14-day, relative strength index (RSI), which rose to over 83 on December 16, the token had entered an overbought area. This overbought state often signals that a correction or consolidation phase is due, which causes traders to make profits with them. This may lead to a drop in prices if the supply catches up.
Although the RSI has fallen to around 71.36 since then, this still indicates that the market is still overbought and could record further declines before it is stabilized.
This decline is not uncommon on the cryptom market, where fast price increases can lead to considerable corrections.
Interestingly, the sudden drop in prices is disappointing for some, but could offer an opportunity for new investors to get into the market at a cheaper starting point.
Source: Coinlist.me