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

Virtuals Protocol price increased by over 23,000% in 2024, making it the best-performing altcoin in the crypto industry.

Virtual Protocol (VIRTUAL) rose from a year-to-date low of $0.02234 in August to $3.4 on December 27.

This rally occurred due to the growing excitement surrounding artificial intelligence agents. AI agents are software tools that use artificial intelligence to perform tasks for the end user.

By allowing users to create these agents, the Virtuals Protocol hopes to become the crypto industry’s largest decentralized AI agent network. Some of its top agencies have reached a multi-million market cap. For example, GAME’s market cap is over $304 million, while Prefrontal Cortex Convo Agent and Luna are valued at over $100 million.

Virtuals Protocol’s price action mirrors the price action of other major players in the AI ​​space such as NVIDIA, Palantir, and Broadcom. All these companies have become giants by focusing on artificial intelligence solutions. NVIDIA and Broadcom are in the semiconductor industry, while Palantir produces artificial intelligence software solutions.

VIRTUAL has several potential catalysts in 2025. The most important of these is the growth of artificial intelligence agents that can attract more investors to their network. It is also likely to be listed on more exchanges such as Binance and Coinbase. Most of the trading volume of virtuals occurs on exchanges such as Bybit, Bitget and Gate. Listing on other top tier 1 exchanges will push it even higher.

But numerous risks remain. The AI ​​industry and the excitement that accompanies it could slow down in 2025, impacting most assets. Moreover, there are fears that most AI assets are overvalued.

VIRTUAL price faces technical risks VIRTUAL price chart | source: crypto.news

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

Meanwhile, the Wyckoff Method states that assets go through many stages. In this case, the Virtuals Protocol remained in an accumulation phase between May and November, when there is typically minimal price movement.

It then entered the marking phase, which is currently ongoing. The coin will now move into the distribution phase, after which it will be discounted. If this happens, the cryptocurrency could soon drop to $2.