The geopolitical situation in the Middle East impacts the cryptocurrency market, particularly Ethereum and VIRTUAL.
Overall State of the Cryptocurrency Market
The cryptocurrency market remains under pressure as heightened geopolitical tensions between Israel and Iran weigh heavily on investor sentiment. Ethereum (ETH) has retreated sharply from its monthly high of $2,877 to around $2,425.
Fractal Suggests Potential Reversal for VIRTUAL
Over the last seven days, VIRTUAL has dropped by 21%, pushing its monthly losses to a steep 28%. However, beneath the panic lies an encouraging technical setup similar to a past fractal seen in Chainlink (LINK). VIRTUAL has formed a head-and-shoulders top pattern and is currently approaching its key demand zone between $1.21 and $1.32.
Possible Outlook for VIRTUAL
If VIRTUAL holds the $1.21–$1.32 demand zone and shows signs of accumulation, particularly with a reclaim of the 100 MA at around $1.82, a bullish reversal could be possible. This may drive VIRTUAL back toward the $2.80–$3.00 mark.
Despite the potential for a technical reversal for VIRTUAL, investors should remain cautious due to macroeconomic factors impacting the market.
