Virtuals Protocol (VIRTUAL) is expected to revisit the $3 price level and then, form a bullish momentum while analysts highlighted the possibility of AI run now cooling down.
Virtuals Protocol (VIRTUAL), one of the best-performing cryptocurrencies in 2024, is now gearing up for another price surge once the prevailing consolidation period ends, according to prominent analyst Michaël van de Poppe. The analyst highlighted a key trading strategy for VIRTUAL traders that could make them a profit of almost 85%.
In a post on social media platform X (formerly Twitter), Poppe emphasized that during times of uncertainty and extreme volatility, it is better to zoom out and look for “relatively ‘easy’ bounce plays.”
Previously, the altcoin dropped to the $2.5 price region and then soared around 85% to claim a high of $4.13. Poppe claims that such a similar trend will happen again and advised investors to gain an entry position at around the $3 region, which would then result in a similar trade.
As clear from the chart above, an exit at around $5.55 would yield 85% returns, which means that VIRTUAL is expected to print a new all-time high soon, as the current ATH for the altcoin stands at $5.07.
VIRTUAL Buyback-and-Burn Program
In a post on X (formerly Twitter), Virtuals Protocol unveiled a buyback-and-burn program for its community that involves the artificial intelligence (AI) protocol acquiring digital assets and permanently removing them from circulation, i.e., burning them. The protocol will use over 13 million VIRTUAL tokens (around $43 million) to buy 25 distinct AI tokens launched on its platform and completely eradicate the cryptocurrencies from existence.
Virtuals Protocol made the announcement on Wednesday and added that these acquisitions will be made across a 30-day time-weighted average price. The biggest burns will be from GAME at 1.6 million tokens, CONVO at 1.1 million tokens, and AIXBT at 880,000 tokens, as per the data from Dune Analytics.
VIRTUAL Price Analysis
VIRTUAL has crashed massively in the past 24 hours, while the broader market remains bullish. The digital asset is trading at $3.33, down 8.27% in the past 24 hours. Also, the altcoin is down a significant 33.97% from its all-time high, but is up 20.05% in the last 30 days.
However, prominent analyst Greigh Ward on X stated that the possibility of VIRTUAL seeing another bullish run is not very high and suggested investors thank the cryptocurrency for the bounce and “move on.” Despite being a hot trend for a number of months, the AI rally cooled down now, and Ward expects a bottom soon.
The Relative Strength Index (RSI) for the VIRTUAL price action reads a value of 52.03, which suggests that while the bulls are in control, the sellers are gaining control. The gradient of the line suggests a retest of $3.
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