Virtuals Protocol (VIRTUAL) witnessed a sharp 15% price surge within 24 hours following its listing on Binance. The rally comes amid renewed interest in AI-driven crypto tokens and a $500 billion AI investment plan introduced by former U.S. President Donald Trump. While this uptick has fueled optimism among some investors, underlying data suggests the excitement may be short-lived.

Binance Hype Drives Price, But Fundamentals Lag Behind

The Binance listing has clearly reignited interest in VIRTUAL, a token tied to the AI-agent economy. However, despite the strong price action, a deeper dive into the protocol’s fundamentals reveals concerning trends. On-chain activity and protocol usage have shown significant decline, suggesting that the price spike may be more speculative than fundamentally driven.

According to Dune Analytics, VIRTUAL’s daily protocol revenue on April 10 totaled just $137, while AI agents on the platform generated $7,677 in revenue. For a project that once reached a $5 billion market cap, these numbers highlight a worrying lack of user engagement and economic activity.

Adding to the skepticism, Grayscale removed Virtuals Protocol from its Q2 2025 “Assets Under Consideration” list, signaling a clear drop in institutional interest.

User Activity on the Decline

The number of new tokens introduced on the Virtuals Protocol has also dropped sharply. Once averaging hundreds per day, current figures show just 1–4 token introduces daily—a steep fall from the 1,350 peak recorded on November 30, 2024. This drop reflects waning interest among developers and users, further weakening the case for a sustained recovery.

Despite the Binance-fueled rally, these indicators suggest that VIRTUAL’s surge could lose steam if user activity and protocol growth fail to catch up.

Technical Indicators Flash Mixed Signals

Technically, VIRTUAL’s Relative Strength Index (RSI) rose from 40.55 to 64.85 in just one day, reflecting growing bullish momentum. However, with the RSI still below the overbought threshold of 70, the move appears strong but not extreme. The Ichimoku Cloud shows a short-term bullish crossover (Tenkan-sen above Kijun-sen), yet price remains trapped within a bearish cloud—indicating unresolved resistance.

Other key indicators like BBTrend at -21.5 suggest weak trend strength, meaning the upward price movement may not be sustainable without renewed fundamental support.

Price Outlook: Momentum vs. Reality

At press time, VIRTUAL trades near $0.584, with resistance looming at $0.619. A breakout beyond this level could open the path to $0.747 and potentially $0.84 if buying pressure continues. However, failure to break through resistance may result in a pullback toward key support at $0.516, and if that breaks, a further slide to $0.411 could follow.

Despite short-term bullish signals, VIRTUAL’s long-term trend remains uncertain. Technicals show early signs of a reversal, but without stronger on-chain performance and renewed protocol usage, the rally risks fizzling out.

Final Thoughts

While the Binance listing has undeniably boosted VIRTUAL’s visibility and short-term price action, deeper analysis reveals critical weaknesses. Diminished revenue, falling developer activity, and declining institutional interest cast doubt on the project’s long-term viability. Unless the Virtuals Protocol can reignite real usage and deliver on its AI-driven promise, the recent price jump could prove to be a temporary blip rather than a true comeback.

Investors and traders should remain cautious, watching for real progress on the protocol before betting on continued upside.