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.
Source: Coinmarketcap
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.
Virtuals Protocol (VIRTUAL) 4H Chart/Coinsprobe (Source: Tradingview)
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.
