The cryptocurrency market is showing signs of recovery today, as major altcoins turn green after weeks of correction.
Current State of the Cryptocurrency Market
The recent downturn in the cryptocurrency market was largely influenced by Bitcoin's rising dominance, which surged from 54.96% in early December to 61.60%. This has put pressure on the altcoin market. Additionally, macroeconomic factors such as new trade tariffs have injected further volatility.
Analysis of Virtuals Protocol
Amid this backdrop, Virtuals Protocol (VIRTUAL) has managed to build upside momentum, posting 9% gains and currently trading at $1.25, after suffering a 57% decline in the last 60 days. Looking at VIRTUAL's daily chart, the token has been consolidating within a falling wedge pattern after hitting its all-time high of $5.12 on January 2. The most recent drop pushed VIRTUAL to a low of $1.05, where it found strong 200 MA support—which also aligns with the wedge’s lower trendline.
Conclusion and Outlook
Now, VIRTUAL is showing resilience, bouncing back to $1.25 with strong support from moving averages. The MACD indicator is hinting at a potential bullish crossover, suggesting a possible shift in momentum toward recovery. If the bullish pressure continues, VIRTUAL’s next hurdle is the 15 MA. A breakout above both the 15 MA and the falling wedge resistance—especially with a successful retest—could open the doors for a strong recovery.
While VIRTUAL is showing signs of a potential breakout, traders should closely monitor Ethereum (ETH) movements and Bitcoin’s dominance, as these factors could significantly influence the overall market sentiment.
