Virtual Protocol, a decentralized platform focused on creating and monetizing AI agents, has recently experienced a significant surge in both user activity and its native token price, VIRTUAL. Over the past week, VIRTUAL has risen by an impressive 161%, reaching a two-month high of $1.46. This growth coincides with a marked increase in the number of active wallets holding the token on the Base and Solana blockchains, signaling growing user engagement and demand.

Surge in AI Agent Activity Fuels VIRTUAL Token Demand

The sharp increase in Virtual Protocol’s activity can be attributed to the rising popularity of AI agents. On-chain data reveals that the number of unique active wallets holding VIRTUAL tokens across the Base and Solana blockchains has surged by 95% in just five days, reflecting an uptick in users creating, deploying, and interacting with decentralized AI services. This growing interest in Virtual Protocol’s ecosystem has driven the token’s price higher, with VIRTUAL now trading at its highest value in two months.

Market Sentiment and Indicators Point to Continued Growth

The surge in VIRTUAL’s price is supported by several key indicators that suggest the bullish momentum may continue. The Chaikin Money Flow (CMF) indicator, which measures the capital inflow into an asset, is currently above the zero line and trending upward at 0.23. This confirms that buying pressure is currently outpacing selling activity, which is typically a bullish signal.

VIRTUAL’s rapid rise in value, coupled with growing demand for the token, positions it as one of the top performers in the cryptocurrency market. Today, the token alone saw an 18% increase, making it the leading gainer across the market. With the growing popularity of AI applications and decentralized finance (DeFi), VIRTUAL is gaining momentum and could see more price rallies in the future.

Potential for Further Gains Despite Overbought Conditions

VIRTUAL’s price has now broken past the critical resistance level of $1.44, a key barrier it had struggled to surpass in previous attempts. If buying pressure remains strong and the bullish trend continues, VIRTUAL could see its price push toward the next target at $2.25, a level it reached earlier this year in January.

However, caution is warranted in the short term. Technical indicators such as the Relative Strength Index (RSI) indicate that VIRTUAL may currently be overbought. With an RSI of 83.92, the token is in overbought territory, suggesting that the asset may be due for a price correction. If profit-taking begins or if market sentiment shifts, VIRTUAL could experience a pullback, potentially dropping below the $1.44 support and testing lower levels like $0.96.

Conclusion

Virtual Protocol’s VIRTUAL token has experienced an extraordinary surge in value, driven by a growing interest in AI agents and an increase in active users within the protocol’s ecosystem. Despite the overbought conditions indicated by the RSI, the bullish momentum supported by technical indicators such as CMF points toward further upside potential for VIRTUAL. If the demand for decentralized AI applications continues to rise, VIRTUAL may see even higher price levels, but traders should stay vigilant for potential short-term corrections.

As of now, VIRTUAL remains a strong contender in the cryptocurrency market, especially as AI and decentralized technologies continue to gain traction.