Virtuals Protocol’s (VIRTUAL) AI Agent Token Shows Extreme Volatility, Mimicking XRPs Past Price Action

AI agent tokens, such as Virtuals Protocol’s (VIRTUAL), have been attracting attention due to their price volatility. Market analyst Michaël van de Poppe recently highlighted VIRTUAL’s price action and its potential trading opportunities.

According to van de Poppe, VIRTUAL’s price movements are reminiscent of XRP’s past price action. He suggests that identifying high-time-frame (HTF) support areas could reveal opportunities for bounce plays.

“AI Agents have been doing great, as $VIRTUAL has been making massive moves. Same concept as with $XRP. Extreme volatility -> zooming out -> HTF support areas for obvious bounce plays. In this case, looking at $2.50-3.00 for a strong bounce play,” van de Poppe stated in a tweet.

At press time, VIRTUAL is trading at $3.86, reflecting a 6.77% drop in the last 24 hours. The token saw an impressive upward movement recently, reaching a high of $4.40 before experiencing a sharp decline.

This downtrend began after the token failed to break above the $4.40 resistance level, leading to profit-taking and a pullback in prices. As the token’s price dropped below the $4.00 mark, this further selling pressure pushed prices down to around $3.86, where the token appears to have stabilized.

To gauge the token’s recent price performance, considering its 24-hour trading volume, which is up 7.24%, and currently stands at $386.68 million, indicates heightened activity despite the price decline.

Moreover, the market cap of $3.85 billion showcases the token’s size within the crypto market.

In terms of technical levels, the resistance zone is firmly established around $4.40. This price point was rejected sharply, signaling strong selling pressure. Another potential resistance zone lies between $4.10 and $4.20, where consolidation occurred during the initial price drop.

On the support side, $3.85 is a critical level to watch. The token has shown signs of stabilization near this price, but if it fails to hold, a further downside could be in store. A potential support range is observed between $3.70 and $3.75, where buyers might re-enter the market.

Analyzing key technical indicators provides further insights into the token’s potential movements. The Relative Strength Index (RSI) is currently at 59.36, suggesting strong buying interest, though it remains below the overbought threshold of 70. This implies that there is room for further upside before the market becomes overbought.

The Moving Average Convergence Divergence (MACD) presents a mixed outlook. The MACD line remains above the signal line, signaling bullish momentum. However, the histogram shows decreasing momentum.