Virtuals Protocol (VIRTUAL) Retesting Key Breakdown — What Could Happen Next?

Date: Wed, July 02, 2025 | 03:37 PM GMT
The cryptocurrency market is gaining upside momentum today, with Ethereum (ETH) leading the charge — rallying nearly 3% to trade around $2,500, which is boosting sentiment across major altcoins .
Among them, Virtuals Protocol (VIRTUAL) has surged over 5%. But beyond the green candles, the chart suggests that VIRTUAL is at a key decision point as it retesting a recent breakdown.

Retesting Bearish Pennant Breakdown
On the 4-hour chart, VIRTUAL recently broke down from a bearish pennant pattern, a formation often signaling the continuation of a prior downtrend. After a sharp decline in late June, price consolidated in a tightening wedge, forming lower highs and higher lows—a classic pennant structure.

Now, VIRTUAL is retesting the underside of the broken pennant, an area that previously acted as support but is now functioning as resistance. This level coincides closely with the 100-period moving average, currently sitting around $1.57, making it a key decision zone for price action.
What’s Next for VIRTUAL?
At the moment, VIRTUAL is hovering around the $1.57 mark, where both the broken trendline and 100 MA converge—creating a strong resistance cluster. A rejection from this zone would confirm the breakdown and likely trigger further downside pressure, with a potential first downside target of $1.41 in the short term.
However, if buyers manage to reclaim $1.63, breaking above both the trendline and the 100 MA, this would invalidate the bearish setup and could open the door to a bullish reversal in the short term.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please do your own research and consult with a professional before making investment decisions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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