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Virtuals Protocol appears to be positioned for further gains, driven by robust technical indicators and increasing institutional interest.

Virtuals Protocol Gains Momentum

On Wednesday, May 28, Virtuals Protocol surged by 19%, reaching an intraday high of $2.53 during afternoon trading in Asia. This rally pushed its market capitalization close to $1.6 billion. The token has now climbed over 500% from its year-to-date low, reflecting strong investor confidence in its potential.

Institutional Recognition Fuels Growth

A key driver of this rally is Virtuals Protocol’s recent inclusion in a new Artificial Intelligence Crypto Sector Index launched by a prominent institutional player. The index tracks 20 top-performing AI-focused tokens, and this recognition underscores Virtuals Protocol’s growing relevance in the intersection of AI and cryptocurrency.

AI Market Sentiment and NVIDIA Connection

Another factor influencing the bullish sentiment is the highly anticipated earnings report from NVIDIA. Analysts expect NVIDIA’s Q1 revenue to grow by 65%, reaching approximately $43.17 billion, with earnings per share projected to rise from $0.61 to $0.73. The company’s Q2 revenue guidance could potentially hit $45 billion, further cementing its position as a leader in AI hardware.

As NVIDIA plays a pivotal role in the AI ecosystem, a strong earnings report could amplify positive sentiment around AI-related tokens, including Virtuals Protocol.

New Features Enhance User Experience

Adding to the positive outlook, Virtuals Protocol recently unveiled a new feature called TP Cooldown History. This functionality, part of the Genesis system, provides users—referred to as “Virgens”—greater transparency regarding cooldown periods and the impact of specific actions, such as selling Genesis agents. This update has been well-received by the community, reinforcing trust and improving the overall user experience.

Technical Analysis: Bullish Signals

From a technical perspective, Virtuals Protocol is exhibiting strong bullish signals. The token formed a bullish engulfing candle on Tuesday’s daily chart, confirming a U-shaped recovery that has been developing since its April correction.

Key Resistance Levels and Patterns

One notable breakout occurred when the token surpassed the $2.22 resistance level, which also served as the neckline of a cup-like pattern. Following this, Virtuals Protocol broke above the upper boundary of an ascending triangle, a classic pattern that often signals upward momentum.

Momentum Indicators Support Bullish Outlook

Momentum indicators further support the bullish case. The MACD line has crossed above the signal line, indicating sustained buying pressure. Additionally, the price has moved above both the 50-day and 200-day moving averages, which are on the verge of forming a golden cross, a well-known bullish indicator. The Relative Strength Index (RSI) is also trending upward, reinforcing strong buying activity.

Price Targets and Support Levels

If bullish momentum continues, Virtuals Protocol could target $2.78 next, a level aligned with the 50% Fibonacci retracement. A breakout above this level may pave the way toward $3.38, corresponding to the 0.382 Fibonacci level—approximately 38% higher than current prices.

However, if sellers regain control, the price could retest the $2.22 support level, which aligns with the 78.6% Fibonacci retracement level, providing a critical benchmark for potential downside protection.

Disclosure: This article is for informational purposes only and does not constitute financial or investment advice. Readers are encouraged to conduct their own research before making any investment decisions.

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