Market Overview for Virtuals Protocol/Tether (VIRTUALUSDT)

Summary
• Price tested key resistance at 0.985–0.986 before retreating.
• Volume surged during the 05:00–07:00 ET sell-off, confirming bearish momentum.
• RSI dipped into oversold territory near 30, suggesting potential rebound.
• Bollinger Bands narrowed midday, indicating a period of consolidation.
• Fibonacci 61.8% retracement level at ~0.9835 appears to be a key near-term pivot.

At 12:00 ET on 2026-01-17, Virtuals Protocol/Tether (VIRTUALUSDT) opened at 0.9712, hit a high of 0.9922, a low of 0.9639, and closed at 0.9582. Total 24-hour volume was 2,596,844.5, with a notional turnover of approximately $2,476,548.50.

Structure & Candlestick Formations

Price carved a bearish trend with a key breakdown below 0.975 and a strong bearish engulfing pattern around 07:00 ET. A doji formed near 0.9639–0.9643, suggesting short-term indecision. Support levels at 0.9637–0.965 and 0.956–0.958 are now in focus, with resistance likely near 0.9735–0.975.

Moving Averages

On the 5-minute chart, the 20-period MA dipped below the 50-period MA, confirming a bearish tilt. Daily data suggests the 50-period MA is approaching the 100-period MA from below, indicating potential for a crossover into bearish territory on the daily timeframe.

Momentum Indicators

MACD crossed into negative territory early in the 24-hour window, with bearish divergence evident during the sell-off. RSI dipped to 29 in the late hours of 01-17, signaling oversold conditions and potential for a minor rebound. However, sustained momentum above 0.9655 may be required for a credible reversal.

Volatility and Bollinger Bands

Volatility expanded during the sell-off between 06:00–09:00 ET, with price testing the lower band of the Bollinger Bands. A consolidation phase followed, with a narrow band observed between 01:00–04:00 ET. Price remains near the lower bound, suggesting a continuation of the bearish trend unless a breakout to the upper band occurs.

Volume and Turnover Analysis

Turnover and volume spiked between 06:00 and 08:00 ET, especially during the breakdown below 0.970 and again below 0.965. This bearish confirmation contrasts with a period of low-volume consolidation in the early morning. A divergence between falling price and rising volume is not evident, suggesting the bearish move is supported.

Fibonacci Retracements

Fibonacci levels from the 0.9639–0.9922 swing show 61.8% at ~0.9835, which has acted as a resistance. The 38.2% retracement at ~0.9785 has held as a prior pivot point. On a larger scale, daily retracements from the January 17th sell-off may see 0.956–0.958 as key short-term support.

Price appears to be entering a phase of consolidation after the sharp selloff. A test of 0.9545 could be in play, but a rebound to 0.9655–0.9675 may be imminent. Investors should be cautious of a breakdown below 0.956, which could trigger further selling pressure.