Virtual Protocol Surges 195% in April, Market Cap Crosses $1 Billion

Virtual Protocol (VIRTUAL) has experienced a remarkable surge in April, with its price soaring by nearly 195%. This impressive performance has positioned it as the top-performing coin of the month and week. The market capitalization of Virtual Protocol also saw a significant increase, rising by 156.29% and crossing the $1 billion mark. Despite this price rally, there are indications of reduced user activity. Daily active wallets on the Base Network dropped by 84.9% from January highs, and Solana saw a 79.3% decline, suggesting that the price gains have not translated into increased user engagement.

The technical indicators for Virtual Protocol are mixed. The Relative Strength Index (RSI) hit 84.75, indicating that the asset is extremely overbought. The Moving Average Convergence Divergence (MACD) shows a bullish crossover, which is typically a positive sign. However, traders are eyeing the $2.00–$2.20 zone as a key area for potential correction or breakout. This zone is crucial as it represents a potential sell point where the parabolic rally may exhaust itself.

The demand for creating AI agents in the Virtual Ecosystem has cooled off over time. After an initial surge from 68 agents in October to 16,000 agents by mid-January, the numbers have plateaued, holding steady between 16,000 and 17,695 agents for the past four months. This indicates that the initial hype-driven rush has subsided, and the market is now in a consolidation phase.

Despite the price rally, the trading volume on decentralized exchanges (DEXs) remains weak. DEX volume rose by 683% in two weeks to $27.6 million but is still 89.7% below January’s peak of $267.5 million. This reflects low market depth and suggests that the price gains are not backed by strong market participation.

Virtual Protocol’s price rally has been driven by a classic parabolic curve structure, with three completed bases fueling a sharp vertical rally. This began around April 10, breaking through key resistance levels to reach a high of $1.97 by May 1. The projected sell point is between $2.00 and $2.20, which is a crucial level to watch. If the rally sustains, VIRTUALUSD could reach its previous high of $2.60 by the first week of May. However, a failure to break $2.20 could trigger a healthy retracement to support levels at $1.40 and $1.10. Traders should monitor volume and momentum closely while managing profit-taking strategies near the peak zone.