After Reaching $2.24 Three Days Ago, Virtuals Protocol [VIRTUAL] Faced Strong Rejection

After reaching $2.24 three days ago, Virtuals Protocol [VIRTUAL]faced strong rejection. The altcoin retraced to a low of $1.83.

After hitting a high of $2.24 just three days ago, Virtuals Protocol [VIRTUAL] faced strong rejection as it began to decline.

The altcoin fell to a low of $1.83 as it faced rejection from the crucial $2.0 resistance level.

However, over the past 24 hours, VIRTUAL successfully retested the $1.8 support and rebounded to hit a 4-month high of $2.25. In fact, as of press time, VIRTUAL was trading at $2.24. This marked a 13.26% increase.

Over the same period, the coin’s volume surged by 69.16% to reach $329.34 million while the market cap was up $13.18%, hitting $1.44 billion.

A surge in price alongside volume and market cap signals strong demand for an asset. As such, Virtuals Protocol was experiencing significant demand across all market participants in both spot and futures markets.

Source: CoinalyzeFor starters, demand in the spot market remains strong, with buyers dominating over the past 24 hours. VIRTUAL buyers have accumulated 5.18 million in volume, creating a positive market imbalance of 403K compared to sellers.

The same trend extends to the Futures market, where Virtuals Protocol's Open Interest surged 18.83% to $237 million, according to CoinGlass data.

This sharp increase suggests that investors are heavily favoring futures contracts.

Source: CoinGlassVirtuals Protocol's long and short data reveal that most Futures investors are favoring long positions. At press time, longs accounted for over 50% of all futures contracts, with the Long-to-Short Ratio exceeding 1, while shorts held 49% of total Futures.

This preference for long positions is further supported by Virtuals Protocol's Funding Rate remaining positive across major exchanges. When longs dominate the market, it signals bullish sentiment with investors expecting prices to increase further in the near term.

Source: CoinalyzeIs Virtuals Protocol set for a sustained uptrend?According to AMBCrypto's analysis, the coin was currently experiencing a strong upward momentum amid rising demand.

This strong upward momentum is evidenced by the fact that Virtuals Protocol has made bullish crossovers across two fronts.

Over the past 24 hours, the altcoin's Stoch RSI made a bullish crossover, rising to 50. A crossover here suggests that the momentum to the upside is strong and is likely to continue.

Source: TradingViewThis upside momentum was confirmed by another bullish crossover that emerged on Virtuals Protocol's RSI. A move to the upside here suggests that buyers have taken control of the market, thus displacing sellers in the market. RSI has surged to 66 with its MA sitting at 62.

These crossovers pointed out that demand has strengthened the uptrend, and Virtuals Protocol could make more gains.

Therefore, based on the above observation, if the trend continues with bullish sentiments persisting, the altcoin will find the next significant resistance around $2.44.

Conversely, if the attempt by Bulls fails with sellers starting to realize a profit, a pullback will see Virtuals Protocol drop to $1.92.