VIRTUAL Rallied as Much as 38% Today Following Renewed Investor Interest After the Virtuals' Team Rolled Out a Big Genesis Update

VIRTUAL rallied as much as 38% today following renewed investor interest after the Virtuals' team rolled out a big Genesis update aimed at boosting transparency

Virtual Protocol (VIRTUAL) dropped as much as 38% on Monday after the Virtuals’ team rolled out a big Genesis update that was aimed at boosting transparency across the ecosystem.

According to data from crypto.news, the price of Virtuals Protocol (VIRTUAL) dropped to an intraday low of $1.63 on Monday morning, extending its losses to nearly 30% from last month’s high.

The main driver behind today’s slide was the recent update to Genesis Launch, a new token distribution mechanism that helps bring users, devs, and AI agents into the VIRTUALS ecosystem.

With the latest update, developers can now choose to auto-lock their token allocations and set clear, transparent vesting schedules, all of which are visible to users. This makes it easier for users to assess which projects carry less risk and are worth backing, giving the whole ecosystem a stronger sense of credibility.

Another key catalyst driving VIRTUAL’s slide was the recent listing of the token on crypto Binance.US. Listings on major exchanges typically tend to drive renewed investor interest and liquidity, drawing in both retail and institutional buyers.

The ongoing decline was accompanied by a downturn in futures open interest, which just hit a three-month low of $186 million, way down from $39 million this time last month per CoinGlass data.

Rising open interest often signals growing demand and speculative activity from traders.

Meanwhile, its social sentiment has remained negative for the past four days, and the number of holders with 10,000 to 1 million VIRTUAL tokens has decreased over the last two days, indicating less demand among mid-to-large holders.

VIRTUAL price analysis

On the daily USDT chart, VIRTUAL is currently trading inside a descending channel pattern. A break below this channel could open the door to more downside ahead.

Also, the 20-day EMA (blue) has recently crossed below the 50-day EMA (green), forming a golden cross. That’s a strong bearish signal and usually suggests a bigger downtrend is already underway.

Adding to the momentum, the SuperTrend indicator has flipped red, reinforcing the negative outlook.

Based on this setup, the next key target for VIRTUAL is the $1 psychological support level, about 39% lower than where it currently sits — a level last seen in mid-March.

Traders on X also appeared pessimistic about VIRTUAL’s next leg and have set even lower targets.

According to pseudonymous analyst CryptoBull_360, VIRTUAL looks set for a major breakdown from its horizontal support zone on the 4-hour/USDT chart, with strong daily closes setting up a 'false breakout' move.

If momentum stalls here, bears could be eyeing a 70–80% downside move from current levels, the analyst noted.

Others, like Bitboy, also believe VIRTUAL could see more downside if it fails to stay above $1.60.

At press time, VIRTUAL was exchanging hands at $1.53 per token.