Virtuals Protocol token price has crashed in the past few weeks, falling by over 35% from its highest point this year. VIRTUAL token has plunged to a low of $1.7, its lowest point since June 6, bringing its market cap from over $4.5 billion in January to $1 billion today.
This article explores why the VIRTUAL token price is at risk of more downside and why Block3 could be the next big thing in AI gaming.
VIRTUAL Price Forms a Risky Pattern
Virtuals Protocol is a top player in the crypto AI industry that helps users generate AI agents. Some of its top AI agents have become big tokens, with aixbt having over $150 million, while Ribbita has a valuation of over $134 million. Mamo, VaderAI, and GAME have over $53 million.
The eight-hour chart shows that the VIRTUAL price has declined significantly over the past few weeks. It has dropped from the year-to-date high of $2.5895 in June to its current level of $1.7.
VIRTUAL token has moved below the 50-period and 25-period Exponential Moving Averages (EMA). Similarly, the Relative Strength Index (RSI) and the MACD indicators have pointed downwards.
The token has formed a head-and-shoulders pattern, a popular bearish reversal sign. This pattern comprises a head, which in this case costs $2.58, and the right and left shoulders are priced at $2.23 each. The neckline of this pattern is at $1.7635, which also coincides with the 38.2% Fibonacci Retracement level.
Therefore, the VIRTUAL price is likely to experience a strong bearish breakdown, with the next key point to watch being the psychological level at $1. This price is about 40% below the current level.
VIRTUAL price chart | Source: TradingView
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Block3 Could be the Next Big Thing in Crypto
Meanwhile, Block3, an upcoming crypto project, aims to be the next big thing in the crypto gaming industry. It is at the confluence of Unreal Engine and ChatGPT, the biggest player in the artificial intelligence industry.
Block3 aims to democratize the gaming industry by making it cheap and easier for users to build and launch high-quality games through a text-to-game engine. This is unlike the traditional approach, where gaming studios spend over 3 years and millions of dollars building their games.
Block3’s platform has a few key narratives. First, it aims to fully disrupt the gaming industry using AI. In this, its AI engine, known as Trinity, will reduce the time required to build a game to just a few hours.
Second, Block3 aims to infuse artificial intelligence into the gaming industry. For example, Virtuals Protocol has become a major player in the AI agent industry, but many agents have not had mass adoption.
Block3 aims to change this by making AI gaming successful by offering real utility. Its BL3 token will be tied to a real and fast-growing sector.
Block3 will commence its presale on July 1st as it seeks to raise funds to make this goal a reality. You can learn more about Block3 here and follow its updates on X and Telegram.
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