After a nearly 39% drop in a month, Virtuals Protocol may be gearing up for a comeback. A classic technical pattern is forming on the charts, with buyers aggressively defending a key level. The focus now shifts to when, not if, the token will bounce back.
On the daily timeframe, VIRTUAL is forming a double bottom pattern. One of the most reliable reversal configurations in technical analysis. This structure appears after a prolonged bearish phase and typically signals an exhaustion of selling pressure.
The bearish sequence began in early November, when the token failed to break through the resistance at $1.01. This rejection triggered a wave of profit-taking and liquidations, sending the price plummeting more than 20%. The move stabilized around the crucial support of $0.4075, a level that now forms the second low of the double bottom.
The multiple bullish reactions observed in this zone demonstrate active accumulation. Buyers are repeatedly stepping in to defend this floor, preventing any significant bearish breakdown. This price action behavior indicates that the $0.40–$0.42 zone represents a key value level for institutional investors and whales.
The recent bounce to $0.8674 confirms this gradual regaining of control by the bulls. This 113% bullish move from the local low suggests that the balance between buyers and sellers is gradually tilting in favor of demand.
The MA50 around $0.8963 represents the first major resistance to break to confirm a bullish reversal. A clean breakout above this level, supported by solid volumes, would validate the double bottom structure and open the path toward the $1.01 target, representing an upside potential of approximately 16%. The momentum is showing signs of stabilization, with oversold indicators normalizing and a decrease in net flows to exchanges.
Conversely, the $0.80 support represents the invalidation line for the bullish scenario. A confirmed break below this threshold on the 4H timeframe would completely invalidate the current structure and could trigger a new bearish move.
In this negative scenario, the price could quickly retest the $0.40–$0.42 zone, or even break through it if selling pressure intensifies. The risk/reward ratio remains attractive for now for long positions with a tight stop, but the weak volumes and absence of a major catalyst require heightened caution on VIRTUAL.
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