VIRTUAL Protocol Approaches Critical Technical Juncture as RSI Divergence Hints at Potential Breakout

Virtuals Protocol (VIRTUAL/USDT) finds itself at a crucial technical inflection point following months of battling persistent downward pressure. The asset has been range-bound between $1.12 and $1.45 since late May, consistently failing to maintain momentum above the Lower High resistance level. Each rejection has highlighted the necessity for a confirmed weekly close above the broader downtrend to signal any meaningful reversal.

Beneath the surface, momentum indicators are showing signs of shift. The daily RSI has formed higher lows while price action established lower lows—a classic bullish divergence pattern. This technical configuration suggests weakening selling pressure and often precedes trend reversals. The RSI has already broken its own May downtrend, potentially serving as a leading indicator for future price movement.

Technical analysts outline a critical path forward: First, a daily close above the descending trendline. Next, a confirmed conversion of $1.45 from resistance to support. Finally, a retest of the weekly downtrend with sustained volume. Market participants are closely monitoring whether this technical framework can support a genuine trend reversal or become another false signal in VIRTUAL's consolidation pattern.