Virtual Protocol’s VIRTUAL Token Sees 73% Surge Amid Ecosystem Updates

The VIRTUAL token has experienced a significant surge in value, rising 73% since its monthly low on January 13. This rally accelerated after the Virtual Protocol announced new incentives for its ecosystem builders and community. The token’s price reached $3.98, a 39% increase from its intraday low on January 16, and its market capitalization exceeded $3.8 billion at the time of writing.

Key Factors Behind the Rally

There are three primary reasons contributing to the VIRTUAL token’s recent surge:

  • Initiative to Support AI Agent Projects: The Virtual Protocol revealed a plan to support the development of AI agent projects on its platform by providing sustainable rewards for ecosystem builders. These rewards are funded through post-bonding taxes, which are fees generated by the platform after the AI agents go live and begin operating.
  • Buyback-and-Burn Initiative: The project announced a buyback-and-burn initiative, where nearly 13 million VIRTUAL tokens will be used to burn agent tokens over a 30-day period. Token burning permanently removes these tokens from the circulating supply, creating deflationary pressure that can potentially increase their value.
  • Increased Revenue Growth: The revenue generated by the Virtual Protocol has significantly increased over the past months, rising from $240,680 in October to over $2.5 million by mid-January. This growth in revenue typically indicates an increasing number of AI agents deployed on the platform and a higher volume of transactions among them.

Technical Analysis and Market Trends

The VIRTUAL token’s price action suggests a growing bullish trend in the market. The token’s price remains above the 50-day and 100-day Moving Averages, indicating that bulls have begun to dominate the market. The Relative Strength Index reading has moved to 58, confirming this trend.

The Average Directional Index showed a reading of 28, indicating a clear trend strength. The Moving Average Convergence Divergence indicator shows the MACD line pointing upwards, edging closer to crossing over the signal line, which will confirm the bullish reversal.

Given these technical signals, VIRTUAL could potentially retest its all-time high of $5.07. A breakout above this level could lead to price discovery, with the token possibly reaching $5.25, representing a 33% increase from its current price of $3.79.

Risk Considerations

However, if the MACD line fails to cross above the signal line, this bullish scenario would be invalidated, potentially leading the altcoin to drop toward the $2.50 psychological support level.

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