VIRTUAL Bucks the Trend to Record Significant Gains, Surging 183% in April

The broader crypto market has struggled to find direction in April, but one altcoin has bucked the trend to record significant gains.

As institutional interest in crypto grows, HOT token is poised to continue its rally from bullish levels.

What Happened: VIRTUAL (CRYPTO: VIRTUAL) price is up 22% over 24 hours and is the top-performing crypto asset on Monday at the time of writing. The altcoin has soared 183% over the past month. It is one of the few tokens to record substantial gains in an otherwise lackluster market.

If we zoom out, VIRTUAL price has shot up more than 300% since the start of 2024.

At the time of writing, HOT token is up 22% over 24 hours and trades at $1.74. It has touched a 24-hour high of $1.8 and a 24-hour low of $1.4.

The Smart Money Index (SMI)

Earlier this month, on April 22 to be precise, VIRTUAL began a new uptrend and has been notching new daily price highs. As the token’s price climbs, there has been a corresponding rise in its Smart Money Index (SMI).

The SMI indicator tracks the trading activity of institutional investors, often referred to as the “smart money.” It is used to identify trends in an asset’s price movements.

The index analyzes the first and last trading hours of an asset. For instance, if an asset starts the day at $100 and closes at $103, with the highest price reached being $105 and the lowest being $98, then its SMI will be calculated as follows:

SMI = (Last Price - First Price + Highest Price - Lowest Price) / 4

In this case, VIRTUAL’s SMI stands at 3.07.

A higher reading of the SMI suggests that major investors are accumulating positions in an asset, signaling their confidence in its upward momentum. Conversely, a lower SMI may indicate that institutional investors are exiting their positions.

The current uptick in VIRTUAL’s SMI suggests that institutional players are actively accumulating the token, likely positioning for further gains.

Chaikin Money Flow (CMF)

Further supporting the bullish outlook is the token’s rising Chaikin Money Flow (CMF).

This momentum indicator, which measures money flow into and out of an asset, remains in an upward trend and stands at 0.25 at the time of writing.

A higher CMF reading indicates capital is flowing into an asset, while a lower reading suggests capital is flowing out. A reading above zero suggests positive sentiment among traders, and an indicator above 0.5 suggests strong momentum.

Therefore, VIRTUAL’s CMF reading reinforces its recent price surge and hints at the potential for a continued rally in the short term.

Where Is It Headed Next?

HOT token’s triple-digit rally since April 22 has seen it move within an ascending parallel channel. This pattern is formed when an asset’s price consistently makes higher highs and higher lows, moving within two upward-sloping, parallel trendlines. It signals a bullish trend, suggesting that the asset’s price may continue rising as long as it stays within the channel.

If demand strengthens further and pushes VIRTUAL to rally above $1.9, keeping it within the channel, then it could continue to rise and reach $2.26.

However, a strong sell-off will be needed to breakout of this bullish projection. If profit-taking activity overwhelms buyers, leading to a decline in price and breaches of recent support levels, then the token could lose recent gains.

A breakdown below $1.55 may propel VIRTUAL toward another round of selling pressure, potentially driving it to drop toward $0.96.