Virtuals Protocol (VIRTUAL) surged 15% following Binance’s listing announcement, briefly reigniting bullish sentiment around the AI-linked token. However, the rally may be masking deeper concerns about the project’s fundamentals and long-term viability.
On-chain data reveals weak user activity and declining protocol engagement, raising questions about whether the price move is sustainable.
VIRTUAL’s Binance-Fueled Rally Masks Weak On-Chain Fundamentals
Despite the recent price surge fueled by the announcement of a Binance listing, on-chain data suggests that Virtuals Protocol (VIRTUAL) is facing significant challenges in terms of user adoption and protocol activity.
While market sentiment briefly turned bullish, the underlying metrics point to weakening fundamentals, casting doubt on the rally’s sustainability.
Data from April 10 shows that daily revenue for VIRTUAL crypto AI agents amounted to just $7,677, while the protocol itself generated only $137 on the same day—an underwhelming figure for a platform once valued at almost $5 billion in market cap.
This financial stagnation has not gone unnoticed; Grayscale recently removed Virtuals Protocol from its Q2 2025 “Assets Under Consideration” list, signaling a decline in institutional confidence.
Further on-chain analysis reveals a sharp drop in activity. Since March 16, the number of new tokens launched on the protocol has fallen dramatically to just 1 to 4 per day.
This marks a steep decline from VIRTUAL’s all-time high of 1,350 agent launches in a single day on November 30, 2024.
The slowdown in token generation reflects waning interest from developers and users alike, despite the recent price-driven hype.
Altogether, these trends suggest that the current momentum around VIRTUAL may be driven more by the Binance listing news than by any real resurgence in platform usage or innovation.
Without meaningful improvements in on-chain engagement and protocol revenue, the surge risks being short-lived—potentially setting the stage for a correction once the listing excitement fades.
Momentum Builds, But Key Indicators Show Caution for VIRTUAL
VIRTUAL’s RSI has jumped to 64.85 from 40.55 in just 24 hours, signaling a strong uptick in buying momentum after the Binance listing news.
The Relative Strength Index (RSI) is a momentum indicator ranging from 0 to 100. Readings above 70 suggest overbought conditions, while below 30 indicates oversold territory.
With VIRTUAL’s RSI nearing 70—but not crossing it—it shows growing strength, though it hasn’t reached overbought levels since March 24, hinting at limited follow-through behind the recent surge.
The Ichimoku Cloud for VIRTUAL shows a short-term breakout attempt, but underlying resistance remains strong.
The price has just pierced into the red cloud, indicating an early test of a bearish zone that often acts as overhead resistance.
The Leading Span A (green cloud boundary) is still below the Leading Span B (red boundary), confirming the cloud is bearish overall.
However, the upward move that pushed price into the cloud hints at potential trend reversal attempts if momentum continues.
The Tenkan-sen (blue line) has crossed above the Kijun-sen (red line), a short-term bullish signal. But with price still within the cloud and not clearly above it, confirmation of a full trend reversal is lacking.
Will VIRTUAL Price Rally Continue?
Binance founder CZ recently stated that only 0.05% of AI agents truly need tokens, a comment that casts doubt on the long-term utility of many AI-linked projects—including VIRTUAL.
Technically, VIRTUAL’s EMA lines still reflect bearish momentum, with short-term averages sitting below the longer-term ones.
If bullish sentiment holds, however, the token could test resistance at $0.619.
A breakout from that level may open the door for moves toward $0.747, and in the case of strong follow-through, even a rise to $0.84.
If the recent rally fades, VIRTUAL price risks falling to its immediate support near $0.516.
Losing that level could accelerate downside pressure, potentially dragging the price down to $0.411—a level that would signal a clear rejection of the current uptrend attempt.
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