Virtuals Protocol Faces Resistance at $2 Despite 11% Price Rally—Is Investor Interest Fading?
Virtuals Protocol Faces Key Test at $2 as Momentum Wavers
Virtuals Protocol (VIRTUAL) is showing signs of life with a recent 11% price jump, climbing from $1.63 to $1.84. While this bounce is drawing attention, the road ahead appears uncertain. Behind the price action, fading investor interest and weakening technical indicators suggest the rally may be short-lived unless conditions shift.
A Short-Term Spike, But Long-Term Uncertainty
Over the past 24 hours, VIRTUAL surged more than 11%, posting one of its strongest daily performances this month. The token is now approaching a key resistance level at $1.93, a barrier that could determine whether it continues upward or stalls.
This price bump follows a rebound from the $1.63 support zone, a level that previously cushioned declines. But a closer look at on-chain data paints a more complicated picture.
New Wallet Growth Slows to Multi-Week Low
According to network metrics, the number of new wallet addresses interacting with Virtuals Protocol has dropped to its lowest in over six weeks. This decline in user adoption could be a red flag for sustained growth.
The slowdown in new user activity is often viewed as a signal of waning interest, particularly among retail investors. When new participation dries up, it becomes harder for momentum to continue, especially in volatile altcoin markets.
Technical Signals Flash Mixed Warnings
From a technical analysis standpoint, the Average Directional Index (ADX) for VIRTUAL remains above the 25.0 level—indicating some ongoing trend strength—but it’s sharply falling. A dip below 25.0 would suggest weakening momentum, reinforcing concerns that the rally could fizzle.
The $1.93 resistance level now acts as a short-term litmus test. If bulls manage to push through and convert that into a support floor, the next key level to watch would be $2.00. Surpassing that could open the door to a move toward $2.45, a level not seen in weeks.
However, if the market turns against VIRTUAL, or selling pressure ramps up, the token could retreat. A fall below $1.63 support might drive the price down to $1.50 or lower.
What’s Next for Virtuals Protocol?
For now, the token’s price action is caught between potential breakout and possible retracement. Whether VIRTUAL can hold its current gains or extend them depends on a mix of broader market sentiment, buyer conviction, and re-engagement from new investors.