VIRTUAL Price Breakout Hopes Meet 3 Bullish Catalysts

Virtuals Protocol (VIRTUAL) has exploded nearly 88% in the past week but has since moved sideways near $1.45. That might look like a pause after a big rally, but under the surface, several indicators are flashing bullish for the VIRTUAL price.

Three strong signs show that the token could be preparing for another leg up.

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Flag Pattern Holds Firm as Divergence Signals Strength: The First Bullish Sign

On the 12-hour chart, VIRTUAL is consolidating inside a bullish flag (pole and flag) pattern, which forms after a steep rally when traders pause before pushing higher. The pattern is tightening near the upper trendline, hinting that pressure is building for a breakout.

Between October 28 and 30, the token’s price made a higher low, while the Relative Strength Index (RSI) made a lower low. This phenomenon, termed hidden bullish divergence, happened during the flag-based consolidation.

RSI measures buying versus selling strength. And in VIRTUAL’s case, it hints at bullish continuation. In short, sellers are losing control even though price growth has slowed.

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If VIRTUAL breaks above the flag’s upper trendline, the setup could confirm a new uptrend. But the breakout hopes aren’t random, and we have another bullish sign next.

Moving Averages Add Weight to the Breakout Case: The Second Sign

Adding to the bullish pressure, the 50-period Exponential Moving Average (EMA) is about to cross above the 100-period EMA.

The EMA smooths out price data to highlight recent momentum trends. When a shorter EMA crosses above a longer one, it often marks the start of a new bullish phase.

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This crossover comes right as VIRTUAL’s price tests the upper flag boundary. It is a rare alignment that reinforces the breakout hypothesis. If both the EMA crossover and a close above the upper trendline happen together, it could act as a double confirmation of strength.

Smart Money Builds Positions Ahead of the VIRTUAL Price Move: The Third Sign

While retail traders might be waiting for clearer signals, smart money — the term used for experienced or institutional investors — is already showing its hand.

The Smart Money Index (SMI), which tracks the flow of funds from informed traders, has been trending higher since early October, despite a few dips along the way. The index has made higher highs consistently, even as prices consolidate, suggesting quiet accumulation behind the scenes.

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This increase in smart money activity typically precedes price expansion, suggesting that big players expect the flag to resolve higher.

If the VIRTUAL breakout above $1.60 holds, potential upside targets lie at $3.61 (per pole projection) and $3.92, according to Fibonacci projections. However, post the breakout, VIRTUAL might find the strongest resistance near $1.97 (right before the psychological barrier of $2) and $2.95 (ahead of $3).

That said, if support at $1.37 followed by $1.17 breaks, it would likely invalidate this setup. That would signal a longer consolidation phase instead.