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VIRTUAL Price Drops 20% After Reaching a New All-Time High: What’s Next

VIRTUAL Price Drops 20% After Reaching a New All-Time High: What’s Next

BeInCryptoBeInCrypto2024/12/17 12:30
By:Tiago Amaral

VIRTUAL's uptrend is losing steam as ADX and BBTrend indicators weaken. Holding $2.28 support is crucial to prevent further declines, with resistance at $3.3 for a potential recovery.

VIRTUAL is currently undergoing a correction after hitting a new all-time high, following a surge of over 400% in one month. This signals a shift in momentum for the market’s leading AI crypto agent coin. Despite the sharp pullback, VIRTUAL maintains technical importance, as its recent BBTrend and ADX levels indicate a potential weakening of the prior uptrend.

The short-term EMA lines remain above the long-term ones but are pointing downward, suggesting that the emerging bearish momentum could intensify if key support levels fail to hold. For VIRTUAL to recover and reclaim its bullish trajectory, renewed buying pressure would be required to stabilize the trend and challenge its previous highs.

VIRTUAL ADX Shows the Downtrend Could Get Stronger

The ADX for VIRTUAL currently stands at 49.3, a decline from its peak near 60 just a day ago, when the asset achieved a new all-time high. This drop in ADX indicates that the previously strong uptrend, which propelled VIRTUAL to new highs, is beginning to lose momentum.

While a reading of 49.3 still reflects a relatively strong trend, the downward movement in ADX suggests that the uptrend may be weakening, increasing the possibility of a reversal or consolidation. This shift often occurs when buying pressure starts to subside, and traders begin to secure profits, potentially leading to a change in direction.

VIRTUAL Price Drops 20% After Reaching a New All-Time High: What’s Next image 0VIRTUAL ADX. Source: TradingView

The ADX, or Average Directional Index, measures the strength of a trend but does not indicate its direction. It is typically interpreted using thresholds: readings below 20 signal a weak or absent trend, values above 25 suggest a strengthening trend, and levels exceeding 50 reflect a very strong trend.

With VIRTUAL’s ADX now at 49.3, the trend remains strong, though the decline from 60 indicates a loss of momentum. If this trend continues to weaken, the price could face increased selling pressure, transitioning into either a corrective phase or a range-bound period.

For the uptrend to resume, VIRTUAL price would need renewed buying interest and a stabilization of trend strength to maintain its current levels.

VIRTUAL BBTrend Is Still High

The BBTrend for VIRTUAL currently sits at 34.1, down from its recent peak of 38 just one day ago. The BBTrend, or Bollinger Band Trend, is a technical indicator that measures the strength and direction of a trend using Bollinger Bands and price volatility.

Positive BBTrend values indicate that the price is trending upward and is trading near the upper band, while negative values suggest downward momentum and proximity to the lower band. With VIRTUAL’s BBTrend still relatively high, the indicator reflects continued positive momentum, but the recent drop signals a potential shift in strength.

VIRTUAL Price Drops 20% After Reaching a New All-Time High: What’s Next image 1VIRTUAL BBTrend. Source: TradingView

Although VIRTUAL’s BBTrend has remained positive for the past three days, the decline suggests that the uptrend is losing strength. This weakening momentum indicates that the price may no longer be advancing as strongly toward the upper Bollinger Band, which often occurs when buying pressure begins to fade. That could happen as the narrative around artificial intelligence coins cools off before gearing up for new highs.

If this trend persists, it could lead to price consolidation or even a pullback as traders look to secure profits. For VIRTUAL to maintain its bullish trajectory, the BBTrend would need to stabilize or resume its climb, signaling renewed strength and sustained upward momentum.

VIRTUAL Price Prediction: Will It Fall Below $2 In December?

VIRTUAL’s short-term EMA lines remain above the long-term ones, a typically bullish signal, but their downward direction suggests that a potential downtrend is emerging and could intensify. This shift aligns with VIRTUAL’s sharp 20% price drop over the last 24 hours, signaling growing bearish momentum.

If the decline continues, the $2.28 support level will be crucial to prevent further losses. Failure to hold this support could see VIRTUAL price testing $1.99 next, with the possibility of falling as low as $1.349 if selling pressure persists and market sentiment remains weak. If with that potential drop, VIRTUAL would continue to be the leading coin among AI crypto agents.

VIRTUAL Price Drops 20% After Reaching a New All-Time High: What’s Next image 2VIRTUAL Price Analysis. Source: TradingView

On the other hand, if VIRTUAL price manages to regain its bullish momentum, the current downward pressure could prove temporary, allowing the price to recover toward the $3.3 level.

A successful move above this resistance zone could reignite buyer confidence, opening the door for VIRTUAL to test new all-time highs.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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