Virtuals Protocol price went parabolic in the overnight session amid the ongoing artificial intelligence tailwinds. The VIRTUAL token crossed the important resistance level at $4, pushing its market cap to over $4 billion, making it bigger than some popular cryptocurrency projects like Polygon, Ethereum Classic, and VeChain.
AI tailwinds, potential exchange listings
The VIRTUAL token price has become one of the best-performing cryptocurrencies this year, soaring by more than 17,000% from its lowest level in June.
Its performance is primarily because of its positioning in artificial intelligence, one of the fastest-growing industries. In 2024, NVIDIA crossed the important market cap of over $4 trillion, while Broadcom is a trillion-dollar firm because of AI.
AI agents have become a key area in the sector as they help companies use “templates” to build AI platforms. By so doing, firms can simplify their operations and reduce the cost of operations.
Virtuals Protocol is a big player in the AI agents industry, and it has created a platform where users can create their own AI agents. Some of these agents have become multi-million dollar entities.
For example, GAME has attracted a market cap of over $334 million as its total value locked (TVL) jumped to $38.6 million. Luna has a market cap of over $166 million, while aixbt is valued at over $636 million. The Virtuals network will likely continue growing this year.
The next potential catalyst for the VIRTUAL price will be exchange listings by tier-1 platforms like Binance and Coinbase. Most of its volume comes from exchanges like Bybit, Bitget, and HTX. Ultimately, other tier 1 exchanges will likely list it because of its popularity.
Virtuals Protocol price also jumped because of the popularity of the Base Blockchain, which has become the biggest layer-2 network in the industry. Base has accumulated a TVL of over $3.57 billion and handled $181 billion in DEX volume since inception.
VIRTUAL price analysis
The daily chart shows that the VIRTUAL token has gone parabolic in the past few months as it moved from $0.022 to $4. It has risen to the upper side of the ascending channel and crossed the key resistance level at $4.0.
Virtuals Protocol has moved much higher than the 50-day and 100-day moving averages, meaning that mean reversion is a likely scenario to happen. Also, the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bearish divergence pattern.
Therefore, the coin will likely have a bearish breakdown in the next few days as investors start to take profits. If this happens, the next point to watch will be at $3, the lower side of the ascending channel.
