VIRTUAL’s explosive start to the year has left traders watching closely — and some technical imbalances that could spark renewed volatility. What happened - VIRTUAL jumped roughly 86% in the first week of January, climbing from $0.642 to a peak near $1.198 before momentum cooled. At the time of writing it traded around $0.975. (Source: Gem Insider on X; TradingView) - A daily close back below $1 would be a short-term negative for bulls. Context and comparables - Crypto analyst Gem Insider pointed out similarities between this breakout and VIRTUAL’s April 2025 move, when a break of a descending trendline preceded a run to $2.50. Whether the current breakout can match that performance remains an open question. (Source: Gem Insider on X) - VIRTUAL’s rally came amid broader strength in the AI token cohort — CoinMarketCap shows the AI sector expanded by over 20% in the first week of January. Technical outlook - The 50% retracement of the recent impulse move sits near $0.918. Holding that level would increase the odds of further upside and potential new highs. - On-chain and momentum indicators were constructive at the time of writing: MACD and Chaikin Money Flow (CMF) signaled positive momentum and net capital inflows. (Source: Santiment) - The 1-day chart still shows bullish swing structure after VIRTUAL cleared the $1 supply zone earlier in the month, but imbalances remain. A demand zone aligned with the 78.6% Fibonacci level points to a deeper pullback area around $0.73–$0.76 that swing traders may target for long entries. On-chain signals and market behavior - Santiment recorded spikes in “dormant circulation” and “age consumed” on Dec. 30 and Jan. 8. The Dec. 30 spike coincided with price lows and suggested capitulation; the Jan. 8 spike followed the sharp rebound and was consistent with profit-taking as momentum eased. Unless fresh buying and a sentiment shift arrive, those dynamics could make continued upward expansion more difficult. (Source: Santiment) Bottom line VIRTUAL’s initial surge has improved the technical picture, but the move left behind retracement levels and on-chain signals that could prompt pullbacks. Defending $0.918 would be bullish; failure there may open the door to deeper support near $0.73–$0.76. Traders should watch momentum indicators and on-chain flows for confirmation of the next leg. Disclaimer This article is informational only and should not be taken as financial, investment, or trading advice. Cryptocurrencies are high-risk — do your own research before making any decisions. (Content © 2026 AMBCrypto) Read more AI-generated news on: undefined/news

