Virtuals Protocol (VIRTUAL) Rebounds Above $2 with Technical Indicators Suggesting Further Upside

Virtuals Protocol Announces Strategic Partnership to Boost Gaming Ecosystem

In a significant development, Virtuals Protocol revealed a new strategic partnership with a leading blockchain gaming studio. The collaboration aims to integrate VIRTUAL’s token into upcoming gaming titles, expanding utility and adoption beyond trading. The partnership is expected to drive increased user engagement and introduce Virtuals Protocol to a broader audience within the rapidly growing play-to-earn and metaverse sectors. This move highlights Virtuals Protocol’s commitment to long-term growth through real-world applications.

Virtuals Protocol Recovers Strongly After Brief Dip, Crossing $2 Threshold

Virtuals Protocol (VIRTUAL) saw a 15% price surge on May 26, 2025, reclaiming the $2 level after a recent dip below it. This rebound followed concerns that the altcoin might be losing momentum after a minor setback last week. However, technical indicators and on-chain metrics suggest that the cryptocurrency’s bullish run may continue.

The daily chart reveals that VIRTUAL’s price has been forming a U-shaped recovery since April’s correction. The token is currently approaching a critical resistance near $2.22, which also represents the neckline of a cup-like pattern signaling a potential breakout.

The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure, remained above its zero line during this period. This bounce signals accumulating buying interest, a positive sign for further price appreciation. Should this buying pressure persist, VIRTUAL could push toward the $3 mark in the near term.

On-Chain Data and Bull-Bear Power Support Positive Outlook

On-chain metrics also point toward strengthening fundamentals for VIRTUAL. Price-Daily Active Addresses (DAA) divergence, a key metric measuring network activity relative to price, surged by nearly 400% over the past week. According to Santiment data, this indicates a substantial rise in user engagement, which often precedes or supports price rallies.

Furthermore, the Bull Bear Power (BBP) indicator, which assesses whether buyers or sellers dominate, has consistently shown bullish signals. The BBP histogram remains above zero, implying that buyers currently hold control over market dynamics. This dominance could facilitate a move past the resistance near $2.81.

If VIRTUAL successfully breaks this resistance, it may test the Fibonacci retracement level near $3.38. Conversely, failure to surpass $2.24 could trigger a correction back toward $1.44, invalidating the bullish thesis.