- VIRTUAL’s 16% price drop follows a bull rally driven by AI agents’ hype and listings on major exchanges.
- The decline is due to profit-taking and an overbought market condition as indicated by the RSI.
- This pullback may offer a buying opportunity for new investors.
In a surprising turn of events, the Virtuals Protocol token, VIRTUAL, has experienced a notable 16% decline over the past 24 hours, dropping to $2.60 at press time.
This market cool-off follows a dramatic bull rally that saw VIRTUAL soar to a new all-time high of $3.30 on December 16, 2024.
The decline raises questions about whether the bull run is over, or if this is just a temporary setback in a larger trend.
What caused Virtuals Protocol (VIRTUAL) to rally to a new ATH?
Before delving into whether the pullback points to an end of the bullish momentum, it would be important to first understand what was behind the recent rally.
The recent surge in VIRTUAL’s price can be traced back to a series of bullish catalysts and a broader market trend.
Firstly, Virtuals Protocol, an artificial intelligence and metaverse project, has been gaining traction as one of the hottest assets in the crypto market, particularly amidst the rise of AI agents and AI-powered autonomous software. The project’s focus on co-ownership for AI agents, allowing users to create or leverage existing tokens, has attracted significant attention, leading to a rise in the VIRTUAL token demand and a corresponding price surge.
Furthermore, the excitement surrounding the launchpad functionality of the Virtuals Protocol, which enables users to create AI agents and related tokens, has added to the hype. The growth of AI-powered interactions, as evidenced by viral success stories like Terminal of Truths on X, has contributed to the widespread adoption of VIRTUAL.
AI agents have become a new frontier in the crypto space, with related tokens skyrocketing in value as the market sees massive and viral interaction with protocols, apps, and other AI agents.
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— Solana Daily (@solana_daily)…