Virtual Protocol, a decentralized platform for creating and monetizing AI agents, has recently seen a sharp spike in user activity. Over the past few days, Virtual Protocol has seen a positive wave of demand for its native token, VIRTUAL, making it one of the top crypto gainers in the past week.
Virtual's on-chain data indicates that the number of unique wallets holding Virtual Protocol's AI agent tokens has grown immensely across both the Base and Solana blockchain networks, which has boosted the price of VIRTUAL by 53% in the last seven days. In that timeframe, the number of unique active wallets saw a 95% increase, according to Dune Analytics.
Source: Coinmarketcap
This increase in wallet activity shows how users are becoming more involved with the platform's AI agent ecosystem as more people sign up to develop, implement, and consume decentralized AI services. As consumers look to purchase Virtual Agents and get more involved in the protocol, buying pressure on VIRTUAL has increased. The increased demand is reflected in the token's 160% price increase over the last 10 days.
VIRTUAL is currently trading at $1.23, which is down from its two-month high of $1.46 from the previous day, and technical indicators suggest that the price rally may continue. The huge demand for the altcoin is confirmed by VIRTUAL's Chaikin Money Flow (CMF) indicator, which graphically shows capital accumulation into an asset.
Market participants' buying pressure outweighs their selling activity when an asset's CMF is above zero. When combined with VIRTUAL's rising price, this trend is a very positive indication that the token may reach new multi-month highs during a prolonged rally.
Furthermore, VIRTUAL's Relative Strength Index (RSI) shows that the token currently sits in overbought territory, as the momentum indicator is currently showing a value of 83.92, indicating that the altcoin is significantly overbought and due for correction.
If demand continues to rise and the bulls maintain a huge portion of the market control, the altcoin could extend its current gains and climb toward $2.10, the high it last reached on January 31. Should profit-taking begin, VIRTUAL may lose part of its gains, drop below $1.22, and eventually hit $0.96.