Key Takeaways
- VIRTUAL saw a significant breakout from a month-long bullish triangle pattern on the chart. Accumulation has returned as the memecoin sector begins to outperform several other market segments.
Virtual Protocol [VIRTUAL] has rallied by 14.98%, at press time, in the past 24 hours, continuing its upward momentum from the previous week.
If the rally continues, the asset could potentially reverse its prior downward trend.
AMBCrypto’s analysis indicated that VIRTUAL could sustain its bullish momentum and erase the 12% drawdown it recorded over the past month, under certain conditions discussed in the article.
VIRTUAL big break faces sell wall
The memecoin recently broke out of a bullish triangle pattern formed by a descending resistance line and a horizontal support level.
This bullish pattern involves price consolidation within a defined range—in this case, lasting several weeks—followed by a breakout that returns the asset to the beginning of the channel at $2.48.
Source: TradingView
However, despite the current rally and upward potential, VIRTUAL faces notable sell-side pressure at two key levels marked on the chart.
The first resistance lies at $1.98, with another pressure point at $2.14. These levels could trigger a pullback, and if selling pressure intensifies, VIRTUAL could trade lower.
Buyers step into the market
Despite upcoming resistance levels, the likelihood of a continued rally remains strong based on technical indicators such as the Accumulation/Distribution (A/D) and the Parabolic SAR (Stop and Reverse).
The Parabolic SAR is a trend-following indicator that signals direction based on dot placements.
When the dots are positioned below the price, it suggests bullish sentiment and indicates that the price is likely to trend higher.
Complementing this signal is a rise in accumulation. At the time of writing, the market has seen a surge in buying volume.
The A/D line has returned to positive territory, reaching 5.49 million VIRTUAL traded, after staying negative since the 23rd of June.
A continued rise in accumulation, alongside the Parabolic SAR remaining below the price, implies that VIRTUAL has strong potential to maintain its upward trend.
Memecoins back on top fuels VIRTUAL
According to Artemis, the broader memecoin sector’s growth has further contributed to VIRTUAL’s market performance.
Sector analysis, which measures how different market segments are performing relative to one another, shows that the memecoin segment currently has a performance rate of 19.8%, making it the third-best-performing sector.
Source: Artemis
Sustained growth in the memecoin market would likely push VIRTUAL higher, as increased investor interest continues to flow into the segment.
