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Home Articles Wyckoff Theory Explains The VIRTUAL Price Crypto Crash

Wyckoff Theory Explains The VIRTUAL Price Crypto Crash

Crispus Nyaga
Crispus Nyaga
Crispus Nyaga
Author:
Crispus Nyaga
Writer
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.
February 3rd, 2025
Editor:
Ola Amujo
Ola Amujo
Editor:
Ola Amujo
Ola is a content writer and editor specializing in crypto and blockchain. With years of experience writing engaging blogs and news content, he has helped readers understand complex concepts, discover new opportunities, and stay ahead of emerging trends.
Fact Checker:
Ola Amujo
Ola Amujo
Fact Checker:
Ola Amujo
Ola is a content writer and editor specializing in crypto and blockchain. With years of experience writing engaging blogs and news content, he has helped readers understand complex concepts, discover new opportunities, and stay ahead of emerging trends.

The VIRTUAL price has imploded, costing investors over $1 billion. After rising to a record high of $5.1250 in January, it has crashed by over 70% to the current $1.5. It has moved to its lowest level since December 9.

Explore why the Virtuals Protocol (VIRTUAL) token crashed and what to expect.

Virtuals Protocol Initiatives Are Not Helping Its Price

The VIRTUALS price has crashed even as the network made several vital headlines. First, it expanded from Base to Solana, today’s most popular blockchain, by partnering with LayerZero. As part of its expansion, Virtuals Protocol launched a Meteora Pool to enhance trading and engagement. 

Virtuals Protocol has also announced plans to buy back about 13 million tokens from its bonding fees. The goal is to purchase and incinerate those tokens, increasing their scarcity and boosting their price.

The coin’s listing on Upbit, the popular South Korean crypto exchange, and partnering with Illuvium didn’t stop its price from dropping.

The AI industry has done well recently, especially after the launch of DeepSeek, the popular Chinese AI company. While the launch led to an intense crash of companies like NVIDIA and Broadcom, it shows that AI models can be created cheaply.

Virtuals Protocol is a leading player in the sector since its AI agent generator has been used to build popular projects like GAME, aixbt, Luna, Iona, and Olyn.

VIRTUAL price Wyckoff Theory analysis

VIRTUAL Price 03.02.2025
VIRTUAL Price chart | Source: TradingView

The best way to explain the VIRTUAL price crash is through the Wyckoff Theory analysis. Wyckoff is a popular theory that identifies four stages prices go through: accumulation, markup, distribution, and markdown.

The chart above shows that the VIRTUAL price moved horizontally between June and November last year. This horizontal move was part of the accumulation process. It then moved to the markup phase, pushing it from below $1 to over $5.2. 

The coin has now moved to the distribution and markup phases, characterized by weak demand and higher supply. These two phases usually occur when savvy money investors exit their positions, leaving traders holding the bag.

The VIRTUAL price likely has more downsides as the 50-day and 25-day Exponential Moving Averages (EMA) cross. This means that the VIRTUAL price will probably keep falling as sellers target the psychological point of $1.0.

READ MORE: How High Can Cardano Price Realistically Jump in February?

Contributors

Crispus Nyaga
Writer
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.