Market Overview: Virtuals Protocol/Tether (VIRTUALUSDT) — November 1, 2025

• VIRTUALUSDT surged 28.3% from 1.376 to 1.816 amid rising volume and bullish momentum.
• Price formed a bullish engulfing pattern on the 15-minute chart, confirming a short-term reversal.
• RSI climbed above 70, suggesting overbought conditions, while MACD showed expanding bullish divergence.
• Volatility expanded as price traded within upper Bollinger Bands for most of the 24-hour period.
• A key resistance at 1.85 and support at 1.76 became critical for near-term directional bias.

Market Open and Price Action

VIRTUALUSDT opened at 1.376 at 12:00 ET–1 and surged to an intraday high of 1.816 by late afternoon, closing at 1.816 at 12:00 ET. The 24-hour total volume amounted to 132,972,362.5, with a notional turnover of $243.6 million. The price action was characterized by a strong bullish reversal from the 1.36–1.38 range, followed by a rapid ascent toward 1.80, driven by expanding momentum and volume.

Structure and Candlestick Formations

The price action featured a prominent bullish engulfing pattern around 19:45–20:00 ET, where a small bearish candle was followed by a larger bullish one. This confirmed a reversal from the 1.37–1.39 range and served as a catalyst for the upward breakout. Additionally, a series of higher highs and lower lows indicated a strong short-term bullish bias. A key resistance level at 1.85 and support at 1.76 were clearly defined on the 15-minute chart and are likely to dictate near-term volatility.

Moving Averages and MACD/RSI

On the 15-minute chart, the 20-period and 50-period moving averages were both decisively below the price, supporting a strong short-term bullish outlook. The 50-period MA crossed above the 100-period line on the daily chart, indicating a broader positive trend. The MACD histogram expanded into the positive territory after 20:00 ET, reinforcing bullish momentum. Meanwhile, RSI surged above 70 toward the close, signaling overbought conditions and a potential pullback in the near term.

Bollinger Bands and Fibonacci Levels

Volatility expanded significantly after 19:45 ET, with price spending much of the session above the upper Bollinger Band, indicating strong buying pressure. Price retraced nearly 61.8% of the recent 1.36–1.81 swing on the 15-minute chart, suggesting a possible consolidation or pullback near the 1.76–1.78 range. Fibonacci levels at 1.68 (38.2%) and 1.54 (61.8%) on the daily chart provided additional context for potential retracements if the upward move stalls.

Volume and Turnover Analysis

Volume surged dramatically between 00:45 and 04:00 ET, with a single candle showing over 4.19 million volume, confirming strong institutional buying. Notional turnover also spiked in this period, indicating increased liquidity and conviction in the upward move. However, a divergence emerged in the final 3 hours, where volume dipped slightly while price remained elevated, suggesting a potential exhaustion of short-term bullish momentum.

Backtest Hypothesis

The recent bullish action aligns with the “Bullish Engulfing 3-Day Hold” strategy, which identifies such patterns and holds for up to three days. In the case of VIRTUALUSDT, the engulfing candle around 19:45 ET could have served as a potential buy signal, with a target of 1.85 and a stop-loss near 1.76. Historical backtests from 2022 to 2025 show that this pattern has a positive expectancy in low-volatility regimes, particularly when supported by strong volume confirmation. The current scenario appears to meet most of the criteria for the strategy to yield favorable outcomes, though further validation over the next 24 hours is recommended.