Market Overview for Virtuals Protocol/Tether (VIRTUALUSDT) on 2025-10-08

• Price action shows a V-shaped recovery from a 24-hour low of 1.0603 to a high of 1.1249, with the pair closing near 1.1008.
• Momentum shifted midday with a strong RSI divergence hinting at potential short-term strength.
• Volatility expanded after 12:00 ET, as seen in the 15-minute Bollinger Band widening and increased turnover.
• A bullish engulfing pattern formed at the low point (1.0603–1.0703), signaling a potential reversal.
• Total volume reached 6.9M, with turnover exceeding $7.7M, indicating increased activity during the rebound.

Price and Volume Action

Virtuals Protocol/Tether (VIRTUALUSDT) opened at 1.0975 on 2025-10-07 at 16:00 ET and reached a low of 1.0603 before reversing sharply to a high of 1.1249. The pair closed the 24-hour period at 1.1008. Total volume amounted to 6,902,129.9 and notional turnover reached $7,713,026. The price structure displayed a V-shaped bounce and a bear-to-bull reversal after the 1.0603 support level, with a large bullish engulfing pattern suggesting a temporary reversal.

Structure & Key Levels

The 24-hour OHLCV data revealed a strong support level around 1.0603–1.0655, where the price found a floor before reversing. On the 15-minute chart, a bearish breakdown attempt followed by a strong rebound and a bullish engulfing pattern at 1.0603–1.0703 indicates a shift in short-term sentiment. A key resistance is forming near 1.1100–1.1130, where price has stalled multiple times, suggesting a potential area to watch for continuation or rejection.

Indicators and Momentum

The 20-period and 50-period moving averages on the 15-minute chart crossed into a bullish bias after the rebound, with the 20-period line now above the 50-period line. The RSI reached oversold territory (below 30) during the 1.0603 low and showed a bullish divergence, indicating potential for further upward correction. MACD turned positive after the 1.0603 bounce, confirming a shift in momentum. Bollinger Bands expanded significantly during the rebound, highlighting a period of increased volatility. Price is currently trading above the 20-period line and within the upper band, suggesting a period of bullish momentum.

Bollinger Band and Fibonacci Observations

Bollinger Bands expanded sharply after the 1.0603 low, confirming a period of high volatility. The price has since retracted to the mid-band, suggesting a consolidation phase. Fibonacci retracement levels show that the 61.8% level (around 1.0950–1.1000) is currently acting as a key support/resistance area on the 15-minute and daily charts. If this level is held, further upside could be expected toward 1.1100, but a breakdown could see retesting of the 1.0603–1.0655 level.

Backtest Hypothesis

A potential backtesting strategy could leverage the identified bullish engulfing pattern and RSI divergence at the 1.0603 low. A buy signal might be generated at the open of the candle following the engulfing pattern, with a stop-loss placed slightly below the low of the engulfing pattern. The target could be set at the 61.8% Fibonacci level (1.1008–1.1050), with a second target at 1.1100 if the 1.0603–1.1130 swing is extended. This strategy would test the reliability of using candlestick patterns and RSI divergence in low-volume environments like VIRTUALUSDT.