- VIRTUAL breaks out of a 5-month pattern, eyes $5 target.
- On-chain metrics show strong user activity and accumulation.
- Gaming partnership boosts token utility beyond trading.
Virtuals Protocol (VIRTUAL), one of the standout performers in the artificial intelligence (AI) crypto space, has broken through a key technical level, setting its sights on a potential rally toward the $5 mark.
The token, which has surged over 10% in a single day, reclaimed the $2 psychological level after dipping briefly last week, a move that analysts see as the beginning of a larger breakout.
AI crypto market sentiment is rebounding
Importantly, VIRTUAL’s latest price action confirmed the end of a five-month consolidation phase, marked by a cup-like pattern that began forming after its January peak.
Following its April low of $0.41, Virtuals protocol’s token began carving a U-shaped recovery, which has now matured into a bullish breakout above the $2.22 resistance zone, often referred to as the neckline in technical charting.
Notably, the breakout comes at a time when market sentiment around AI tokens is rebounding, buoyed by anticipation surrounding NVIDIA’s earnings report, which is expected to reflect strong AI-driven revenue growth.
With NVIDIA projected to post a 65% year-on-year revenue increase, investors are eyeing broader gains in AI-aligned cryptocurrencies, including VIRTUAL, which has strong ties to AI ecosystems.
Virtuals Protocol price outlook
VIRTUAL’s fundamentals appear to be strengthening as on-chain activity surges alongside renewed investor interest.
According to recent analytics, the price-to-daily active addresses (DAA) divergence metric has spiked nearly 400% in just one week, highlighting a dramatic rise in user engagement and network activity.
This metric, often a leading indicator for price movements, suggests that the current rally is being driven by organic growth rather than short-term speculation.
Simultaneously, the Chaikin Money Flow (CMF) indicator, which tracks accumulation and distribution trends, remains above the zero line, signalling persistent buying pressure.
Moreover, the Bull Bear Power (BBP) histogram has flashed consistent green signals, reinforcing the narrative that buyers currently dominate market momentum.
While smart money investors have recently reduced their exposure, with holdings falling from 11.9 million to 7.1 million tokens, the technical strength appears to be countering these outflows.
In addition to strong chart patterns and on-chain signals, the Virtuals protocol is gaining traction through a newly announced partnership with a top-tier blockchain gaming studio.
This collaboration aims to embed VIRTUAL tokens into upcoming play-to-earn and metaverse titles, further expanding the token’s real-world utility beyond speculative trading.
Notably, such strategic moves could help sustain demand by introducing VIRTUAL to an entirely new segment of users in the gaming ecosystem.
As a result, analysts now view the $2.81 resistance level as the next key hurdle, which, if broken, could pave the way for a move toward the 0.382 Fibonacci retracement level at $3.0688.
Should bullish momentum persist, the token could revisit its all-time high of $5.13, which it last touched in January, thereby completing a full recovery and signaling a possible continuation of its long-term uptrend.
However, traders remain cautious about the $2.24 support zone, as failure to hold this level might invalidate the bullish outlook and trigger a drop toward $1.44.
