tl;dr
Virtuals Protocol (VIRTUAL) experienced a 15% surge following Binance's listing announcement, creating a brief bullish sentiment. However, concerns arise regarding the project's fundamentals and long-term viability, as on-chain data indicates weak user activity and declining protocol engagement. Dai...
VIRTUAL's Protocol (VIRTUAL) saw a 15% surge after Binance's listing announcement, creating a temporary bullish sentiment. However, concerns arise regarding the project's fundamentals and long-term viability. On-chain data indicates weak user activity and declining protocol engagement, leading to questions about the sustainability of the price move. Daily revenue for VIRTUAL crypto AI agents and the protocol itself has stagnated, causing Grayscale to remove VIRTUAL from its "Assets Under Consideration" list. Additionally, a significant drop in new token launches reflects waning interest, suggesting that the recent surge may be more driven by the Binance listing news than actual platform usage or innovation.
Despite VIRTUAL's RSI and Ichimoku Cloud indicating some positive momentum, doubts persist about sustained growth, especially in light of Binance founder CZ's comments on the long-term utility of AI-linked projects. Technical analysis suggests potential resistance at $0.619 and support near $0.516, with a possible further decline to $0.411 if the recent rally fades. The surge, fueled by the Binance listing, appears to mask underlying concerns about VIRTUAL's on-chain fundamentals and may not be sustainable in the long run.
On-chain data reveals that VIRTUAL Protocol's daily revenue from crypto AI agents amounted to just $7,677, while the protocol generated only $137 on a specific day. This financial stagnation has led to Grayscale removing VIRTUAL from its "Assets Under Consideration" list, indicating a decline in institutional confidence. Further analysis shows a sharp decline in the number of new tokens launched on the protocol, with only 1 to 4 new launches per day, a significant drop from VIRTUAL's all-time high of 1,350 agent launches in a single day. This decline in token generation reflects waning interest from developers and users, despite the recent price-driven hype.
Despite the recent surge, the underlying metrics point to weakening fundamentals, casting doubt on the sustainability of the rally. VIRTUAL's RSI has signaled a strong uptick in buying momentum, but caution is advised as it nears overbought levels. Additionally, the Ichimoku Cloud indicates strong underlying resistance, with the price piercing into a bearish zone, highlighting potential overhead resistance. Binance founder CZ's comments on the long-term utility of AI-linked projects, including VIRTUAL, further contribute to the uncertainty surrounding the token's future.
While VIRTUAL's EMA lines reflect bearish momentum, a breakout above $0.619 could open the door for moves toward $0.747 and even $0.84 with strong follow-through. Conversely, if the recent rally fades, VIRTUAL's price risks falling to its immediate support near $0.516 and potentially further down to $0.411, signaling a rejection of the current uptrend attempt.