VIRTUAL Token Crashes 13% as Bears Take Control of Market

• Virtuals Protocol (VIRTUAL) is facing strong bearish pressure on the daily technical charts
• The virtual price is down by almost 13% in the last 24 hours, suggesting bearishness.

Virtuals Protocol (VIRTUAL) is undergoing a strong bearish trend since the digital currency broke below the key technical levels. The present price movement indicates a weakening market structure, which may be an indicator of further downside in the short run. As per CMC data, the asset price is down by almost 13% suggesting bear dominance.

The most worrying trend to VIRTUAL bulls is the fact that the key exponential moving averages have been broken decisively. The token has broken below the 50-day EMA at $1.4753 as well as the 200-day EMA at $1.4357, which is a significant technical failure. Such a crossover pattern, in which price is trading below both the short-term and long-term moving averages, is generally a sign that the control of the price has shifted to bears and is often a precursor to long-term downtrends.

This bearish outlook is supported by the MACD indicator, which has a negative value of -0.0791 with the MACD line below the signal line. The histogram shows mostly red bars, which proves the continuous selling impetus. This bearish sentiment is further confirmed by the Awesome Oscillator (AO), which has a reading of -0.1741, indicating that the recent price momentum is still squarely in the negative.

What Next For Virtuals Protocol (VIRTUAL) Price?

Source: TradingviewRSI analysis gives mixed signals, but it is inclined to oversold conditions. The RSI is at 40.76, just above the lower line, which means that there is a possible technical bounce. The fact that it has been trading below 50, however, indicates that selling pressure still dominates over buying interest.

Price-wise, VIRTUAL is trading at the price of $1.2230, with the critical support being pegged at the price of $1.12. The token is now experiencing direct resistance at the $1.4357 mark, which has become a mighty obstacle following the recent break.

The volume profile indicates that there is more activity in selloff periods, and this is a sign of real distribution and not just technical weakness. This trend indicates institutional or big holder liquidation, which may put downward pressure.

In the long term, the technical prospects of VIRTUAL are looking difficult. The negative momentum indicators and the break below the key moving averages indicate that the trend is down and the path of least resistance is down. The traders are advised to keep an eye on the support levels, as a breach of support may result in faster selling to new cycle lows. Any attempt to recover would have to repossess the 50-day EMA to regain bullish confidence.

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