The VIRTUAL token skyrocketed around 90% over the past week, yet soaring metrics such as RSI and muted spot-volume warn that this rally may be on unstable footing.
Key Takeaways:
- VIRTUAL spiked ~90% in seven days, trading near $1.40 as of press time.
- On-chain data show heavy whale accumulation and strong futures/spot buying, but spot market volume is cooling, a divergence that often precedes a correction.
- Technical indicators are flashing caution: a 7-day RSI above 90, and large long liquidation risk estimated around $8.8 M if support breaks near $1.29.
The Virtuals Protocol token has posted one of the strongest weekly performances in the crypto market, rising nearly 90% amid renewed excitement around AI-driven projects. Data from CoinGecko shows VIRTUAL peaked a weekly high of approximately $1.65, which is the token’s highest since the past 3 months. Crypto exchange Wirex shared the token’s huge price jump on its official X (formerly Twitter) account as the top weekly performer on its platform, highlighting its 90.7% gain over the past week.
Overheated Indicators Raise Red Flags
Despite its rapid ascent, several market indicators suggest the uptrend could be overheating. The token’s Relative Strength Index (RSI) has surged past 90, which is a range often interpreted as a sign that an asset is overbought. Technical analysts caution that such conditions typically precede a correction or a period of consolidation. Meanwhile, the token currently seems to be in its cooling-off phase in the past 48 hours, trading at approximately $1.42 at the time of writing (8:15AM UTC), reflecting a 4.3% drop in the day and peaking an intraday high of $1.50 according to CoinGecko. The token logged intraday lows near $1.38, as per same source.
AMBCrypto provided a data analysis on VIRTUAL’s spot average order size, which pointed to a discrepancy between the behaviors of futures and spot market. While derivatives data shows strong buying pressure, spot trading volume has begun to decline. This divergence could imply that much of the recent momentum is driven by leveraged speculation rather than genuine demand from retail participants.
VIRTUAL’s spot average order size. Source: CryptoQuant
Liquidation Risks Mount as Market Momentum Slows
Further concern arises from on-chain liquidation data. If VIRTUAL fails to maintain support around $1.29, roughly $8.8 million worth of long positions could be liquidated, potentially triggering a cascade of sell-offs. Analysts suggest that such a scenario could amplify downside pressure, especially given the high leverage present in the derivatives market.
As of the latest data, VIRTUAL maintains a market capitalization of about $950 million with approximately 655 million tokens in circulation. Despite the impressive valuation, the current technical setup and trading activity reflect short-term fragility rather than sustained strength.
Outlook
While VIRTUAL’s 90% weekly surge highlights strong investor enthusiasm for AI-linked tokens, sustainability remains uncertain. Maintaining support near $1.29–$1.35 will be critical for preserving short-term momentum. Failure to do so could invite steeper corrections in the coming sessions.
For traders and crypto investors, this serves as a reminder of the importance of disciplined investing strategies and risk management. Unless the rally is backed by stronger fundamentals and increased spot volume, the recent surge could represent more speculation than substance.
Summary
VIRTUAL rallied ~90% to near $1.40, but RSI > 90, softening spot volume, and ~$8.8M long-liquidation risk near $1.29 flag fragility. Support at $1.29–$1.35 is pivotal to avoid a sharper correction.
