VIRTUAL at a Crossroads as Bulls Struggle to Hold Ground

• Virtuals Protocol price dropped by almost 9% in the last 24 hours, suggesting bearishness.
• The VIRTUAL price broke below the 50-day EMA level, indicating sellers’ dominance.

Virtuals Protocol (VIRTUAL) has been facing major technical headwinds with the bulls unable to maintain the pace above key EMAs, which indicates that the bearish pressure may continue. The recent price behaviour of the altcoin shows an alarming trend of rejection of key resistance levels, which does not bode well in terms of a long-term recovery.

The most significant change in the technical environment of VIRTUAL is the inability to hold the support above the 50-day EMA at $1.656. This breakdown is a serious technical breakdown because the 50-day EMA is normally a moving support level in uptrends. The fact that bulls failed to protect this level indicates the declining buying interest and possible additional decline in price.

Nevertheless, the price is still above the 200-day EMA at the price of $1.4298, which offers some support to the longer-term structure. Although this longer-term moving average still provides some basis to hope that a recovery may be possible, the fact that it has now broken down below the 50-day EMA indicates that this support level may also be under threat in the event that selling momentum is maintained.

What’s Next For VIRTUAL Price?

Source: TradingviewAccording to the CoinMarketCap data, VIRTUAL dropped by a sharp 9% in the last 24 hours, showing extreme bullish pressure. The selling pressure seems to have surged after the unsuccessful retest of the 50-day EMA.

Relative Strength Index (RSI) is at 49, which means neutral momentum. Although this reading indicates that the asset is neither overbought nor oversold, the fact that the RSI is neutral and the EMA breakdown is not encouraging enough. The location of the RSI at the midpoint does not give much directional conviction, and traders should look at the price action in relation to the moving averages to give a clearer indication.

To reclaim bullish momentum, VIRTUAL will have to recapture the 50-day EMA at $1.656 and hold this price as support. That the price is still trading above the 200-day EMA at $1.4298 gives some hope to the bulls, but the immediate task should be to defend this longer-term support level and to attempt to regain the 50-day EMA mark. As long as the 50-day EMA is not decisively reclaimed, the technical picture is guarded with the possibility of further decline to the 200-day EMA support.

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