Virtuals Protocol Faces Headwinds in Sustaining $2 Price Level

Virtuals Protocol's recent price momentum is encountering resistance as investor interest wanes. New addresses for the altcoin have plummeted to a six-week low, signaling dwindling market participation. The decline mirrors broader concerns about the project's ability to maintain traction among crypto enthusiasts.

Technical indicators reinforce the bearish narrative. The Average Directional Index shows weakening trend strength, hovering precariously above the critical 25.0 threshold. A breakdown below this level could accelerate selling pressure, potentially reversing recent gains.

Market dynamics suggest Virtuals Protocol may struggle to hold the $2 support level without fresh capital inflows. The convergence of fading technical strength and reduced network growth paints a challenging picture for near-term price action.