VIRTUAL, the native token of the Virtuals Protocol, has soared 45% today

The price of VIRTUAL, the native token of the Virtuals Protocol, has soared 45% in the past 24 hours.

This marks a parabolic rally that brings its seven-day gain to a staggering 150%. In the process, the altcoin has reached its highest level in three months, last seen on February 1.

But what’s driving VIRTUAL’s surge—and can the momentum continue? CCN breaks it all down in this analysis.

VIRTUAL Adds to Its Weekly Surge

Since hitting $0.42 in April, VIRTUAL’s price has increased nearly 400%. As a result, the price has retested $1.76.

According to CCN’s findings, one of the major reasons the altcoin has maintained this trend is due to its trading volume.

On April 30, VIRTUAL’s trading volume dropped below $360 million.

Today, the same metric has increased to $667.72 million. Typically, a drop in volume indicates waning interest in a cryptocurrency.

Therefore, the rise in VIRTUAL’s volume indicates that much liquidity flows into it.

From a trading point of view, if the volume continues to rise, and VIRTUAL’s price remains in an uptrend, then the cryptocurrency’s value is likely to break $2 soon.

On-Chain Data Supports the Move

The Price–Daily Active Addresses (DAA) divergence, which compares an asset’s on-chain activity with its price performance, further supports the bullish outlook.

A positive divergence typically signals bullish momentum, while a negative reading points to bearish sentiment.

Just a few days ago, VIRTUAL saw minimal on-chain interaction. But today, the Price DAA divergence has surged by 811.47%.

This sharp increase suggests that more market participants are actively engaging with VIRTUAL. If this level of network activity continues to rise, the token’s price could follow suit.

VIRTUAL Price Analysis: Further Upside

From a technical point of view, VIRTUAL has broken out of a falling wedge formed on the daily chart. A falling wedge is a bullish chart pattern that signals a potential upward breakout, either as a trend reversal (after a downtrend) or a continuation (during an uptrend pause).

It forms as price moves between two downward converging trendlines. As seen below, VIRTUAL’s price has risen past the upper trendline of the wedge to validate the breakout.

Additionally, the Relative Strength Index (RSI) reading has climbed to 88.68, indicating strong bullish momentum around the altcoin. Like the RSI, the Average Directional Index (ADX) has soared.

This rise in the ADX rating indicates strong directional movement. If sustained, VIRTUAL’s price will likely break through the resistance at $2.18.

If that is the case, the cryptocurrency’s value might climb to $3.34 at the 0.618 Fibonacci level.

On the flip side, the uptrend might weaken if buying pressure around VIRTUAL fades. In that case, the market value could slide below $1.