Why VIRTUAL’s 30% Surge is Just the Beginning!

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Since hitting a low on January 13, VIRTUAL has experienced a significant jump of 73%, with this upward trend gaining momentum following the announcement of fresh incentives for developers within its ecosystem and the community.

On January 16th, the AI agentic platform Virtual protocol (VIRTUAL) surged 39% above its intraday low to reach $3.98. This move elevated its market capitalization beyond $3.8 billion. The significant increase in its stock price was accompanied by a rise in daily trading volume, which exceeded 37%, reaching approximately $821 million. The surge comes as a result of increased investor activity.

Looking at its performance over an entire year, this altcoin has skyrocketed almost 37,000%. This impressive surge makes it the top performer among the 100 largest digital currencies, as reported by CoinGecko’s data.

There are three key reasons why VIRTUAL rallied today.

Initially, my research uncovered a plan to bolster the growth of AI agent projects within our platform by offering long-term incentives to those contributing to its development. These incentives are financed through post-launch fees, which are essentially taxes levied on the platform following the activation and operation of the AI agents. For more details, please refer below.

Introducing modifications to our value distribution system aimed at strengthening the Virtuals community builders:

From now on, post-bonding taxes will be divided as such:
30% goes to the creator of the agent,
20% is set aside for Agent Affiliates,
and a significant 50% will be allocated to the Agent subDAO, which can be used in future decision-making regarding governance.

— Virtuals Protocol (@virtuals_io) January 15, 2025

By implementing this project, it seems that the Virtuals Protocol aims to boost the use of its system, potentially attracting new investors who are intrigued by what they see. This increased attention could lead to long-term expansion and potential increase in value for their primary utility and governance token, VIRTUAL.

Following this, the project has unveiled a plan called ‘Buyback-and-Destroy’, where they will use around 13 million VIRTUAL tokens earned from post-bonding trading revenue of several AI agent projects. Over a span of 30 days, these tokens will be utilized to eliminate the corresponding agent tokens from circulation. This process, known as token burning, significantly decreases the number of available tokens in the market. This decrease could potentially boost the value of the remaining tokens due to the principle of supply and demand.

1. To start, it’s worth noting that the income from Virtuals Protocol has experienced a substantial jump during the past few months. In October, it stood at approximately $240,680, but by mid-January, it surpassed $2.5 million. This surge in earnings usually reflects an expanding user base of AI agents on the platform and a higher frequency of transactions between them. This trend suggests a vibrant and growing ecosystem, which is generally seen as a positive sign by investors.

Additional elements possibly driving VIRTUAL’s upward trend might be:

1. Bitcoin breaching the $100k mark, which could have had a positive impact.
2. An increasingly optimistic market atmosphere, as suggested by the Crypto Fear and Greed Index shifting further into “Greed” territory.

Yesterday’s surge in VIRTUAL’s price also aligns with a broader increase in cryptocurrencies linked to Artificial Intelligence agents. Over the past day, these coins have risen by approximately 12.7%, largely due to the success of LUNA and AIXBT—tokens from two prominent AI-focused projects on the Virtual Protocol. These tokens experienced significant growth, with LUNA increasing by 24% and AIXBT gaining an impressive 27%.

VIRTUAL price action

On the one-day chart for the token ( Virtual/USDT ), its price consistently hovers above both the 50-day and 100-day Moving Averages, indicating a growing influence of bulls in the market. This trend is further supported by the Relative Strength Index ( RSI ) rising to 58, signaling a potential increase in buying pressure.

Additionally, it’s worth noting that the Average Directional Index (ADX) registered a value of 28. When the ADX exceeds 25, it signifies a strong trend direction, suggesting here a robust bullish trend developing within the market.

Furthermore, the Moving Average Convergence Divergence (MACD) graph indicates that the MACD line (represented by blue) is inclined upward and moving toward a potential intersection with the signal line (orange). This impending crossover would reinforce a bullish trend reversal.

Based on these technical indicators, VIRTUAL might revisit its maximum historical value at around $5.07. If it surpasses this mark, we could witness further price escalation, potentially taking the token to $5.25. This would signify a 33% growth from its current value of $3.79.

In other words, if the Moving Average Convergence Divergence (MACD) line doesn’t move up and over the signal line, that optimistic outlook could be disproven, possibly causing the altcoin to fall near the significant $2.50 price point.

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2025-01-16 17:21