Market Overview for Virtuals Protocol (VIRTUALUSDT)

• Virtuals Protocol opened at $1.8342 and closed at $1.8973, forming a strong bullish reversal after a sharp selloff.
• A key support level at $1.7674 held briefly, but the asset rebounded with increasing momentum by late night.
• Volume surged in the last 6 hours, confirming strength in the upward move and aligning with higher highs.
• RSI showed oversold conditions in early hours, followed by a rapid recovery into overbought territory by morning.
• Bollinger Bands expanded significantly during the selloff, signaling heightened volatility and potential trend continuation.

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Virtuals Protocol opened at $1.8342 on July 17, 2025 (12:00 ET − 1), and traded as low as $1.7674 before closing at $1.8973 at 12:00 ET on July 18, 2025. The pair reached an intraday high of $1.8997. Total traded volume for the 24-hour window was approximately 15.8 million units, with a notional turnover of $28.7 million, indicating rising participation and conviction in the bullish move.

Structure & Formations

VIRTUALUSDT formed a strong bullish reversal pattern in the early morning hours, with a long lower shadow following a sharp selloff into the $1.7674 level. This level acted as a temporary support, and the asset quickly rebounded into positive territory. A large bullish engulfing pattern formed around 02:15–02:30 ET, signaling a potential shift in sentiment. The price also tested the 38.2% Fibonacci retracement level from the earlier selloff, which coincided with a key psychological round number and provided a base for the rebound.

Moving Averages

On the 15-minute chart, the price moved decisively above the 20-period and 50-period moving averages by late night, confirming a short-term bullish bias. On the daily chart, the 50-period and 100-period moving averages appear to be converging from a bearish to a neutral stance, suggesting that the longer-term trend may be stabilizing or even turning positive.

MACD & RSI

The MACD turned positive by 01:30 ET and remained above the signal line for the rest of the session, indicating strong upward momentum. The RSI bottomed at oversold levels around 00:00 ET and surged into overbought territory by 05:15 ET, suggesting that the rally may be accelerating but could face near-term resistance or a pullback if overbought conditions persist.

Bollinger Bands

Bollinger Bands expanded significantly during the selloff into the $1.7674 level, reflecting heightened volatility. Price action then moved well above the upper band in the final hours of the session, indicating strong conviction in the upward move. The widening bands suggest the market is in a phase of increased uncertainty or a breakout, which could lead to further directional movement or consolidation.

Volume & Turnover

Volume remained relatively moderate during the initial selloff but spiked sharply after 01:30 ET, coinciding with the bullish reversal. The increase in volume during the upward move provided confirmation of the price action and suggested that buyers were stepping in aggressively. Turnover also rose in tandem, indicating that the price action was supported by real buying pressure rather than thin order book manipulation.

Fibonacci Retracements

The 38.2% Fibonacci retracement level from the $1.8342–$1.7674 swing acted as a key support, and the price bounced off this level with increasing momentum. The 61.8% level is now in play as potential resistance if the upward trend continues. On the daily chart, the 50% retracement level from the broader bearish move appears to be a critical area to watch for potential consolidation or a continuation of the rally.

VIRTUALUSDT has shown strong signs of a short-term bullish reversal, supported by volume and momentum indicators. While the immediate trend appears constructive, the overbought RSI and recent volatility suggest that traders should remain cautious for potential pullbacks or consolidation in the next 24 hours. Investors are advised to monitor key resistance levels and watch for divergence between price and indicators as a risk management precaution.