VIRTUAL price surged in 2024, but faces potential risks in 2025

Virtuals Protocol price surged by over 23,000% in 2024, becoming the best-performing altcoin in the crypto industry.

Virtuals Protocol (VIRTUAL) soared from the year-to-date low of $0.02234 in August to $3.4 on Dec. 27.

This rally happened because of the rising hype surrounding artificial intelligence agents. AI agents are software tools that use AI to perform tasks for the end user.

Virtuals Protocol hopes to become the crypto industry’s biggest decentralized AI agent network by allowing users to create these agents. Some of its top agents have achieved a multi-million market cap. For example, G.A.M.E has a market cap of over $304 million, while Prefrontal Cortex Convo Agent and Luna are valued at over $100 million. 

Virtuals Protocol’s price action has mirrored that of other big players in the AI space like NVIDIA, Palantir, and Broadcom. All these firms have become giants by focusing on AI solutions. NVIDIA and Broadcom are in the semiconductor industry, while Palantir is building AI software solutions. 

VIRTUAL has a few potential catalysts in 2025. The most important one is the AI agents growth, which could push more investors to its network. It will also likely be listed by more exchanges like Binance and Coinbase. Most of Virtuals’ trading volume happens in exchanges like Bybit, Bitget, and Gate. A listing by other top tier-1 exchanges would push it higher. 

However, numerous risks remain. The AI industry and its accompanying hype may slow down in 2025, affecting most assets. Moreover, there are fears that most AI assets have become highly overvalued. 

VIRTUAL price faces technical risks

The VIRTUAL token faces mean reversion and Wyckoff Method risks. As shown above, Virtual price has moved 90% above the 50-day moving average. Therefore, the concept of mean reversion states that an asset often retreats back to the historical average. As such, if this happens, VIRTUAL will likely drop sharply to meet the 50-day moving average.

Meanwhile, the Wyckoff Method states that assets go through numerous stages. In this case, Virtuals Protocol remained in an accumulation phase between May and November, which usually has minimal price movements. 

It then entered the mark-up phase that is now going on. The coin will now move to the distribution phase followed by the markdown. If this happens, the coin may drop to $2 soon.