Virtuals Protocol (VIRTUAL) is showing renewed bullish momentum after breaking a key resistance level, positioning itself for a potential 135% rally toward its all-time high. Despite recent profit-taking by whales and smart money investors, the token has surged over 430% from its April low, driven by optimism across the broader artificial intelligence (AI) sector.
AI Token Rally Boosts Virtuals Protocol Price
VIRTUAL climbed above the crucial $2.1270 resistance level on Monday, marking its highest price since January. The token’s rally coincided with significant gains from major AI agents within the protocol’s ecosystem. Tokens like Ava AI soared 30%, while aixbt, VaderAI, Ribbita, and Game each gained over 15%, signaling increased adoption and user activity within the AI agent economy.
The surge in AI-linked tokens comes as global attention turns to NVIDIA’s Q1 earnings report, scheduled for Wednesday. The chipmaker is expected to report a 65% increase in revenue to $43.17 billion, with Q2 guidance projected to hit $45 billion figures that could reaffirm the explosive growth of the AI sector.
Technical Analysis: Breakout Suggests Uptrend Continuation
On the technical side, Virtuals Protocol has made a convincing breakout from an ascending triangle pattern, moving past the key $2.1271 level and breaking above the 61.8% Fibonacci retracement from its all-time high. The token is now trading well above its 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) continues to trend higher, reflecting strong bullish momentum.
If current conditions persist, analysts expect VIRTUAL to retest its January all-time high of $5.1335 a potential 135% gain from its current price levels.
Mixed On-Chain Signals: Revenue Rises, But Whales Sell
On-chain data presents a mixed picture. According to DeFi Llama, Virtuals Protocol generated $496,000 in revenue this month, more than double last month’s $200,000 but still far below its January peak of $3.9 million. While growing, the revenue gap raises questions about the sustainability of current valuations.
Meanwhile, whales and smart money investors have been selling into the rally. Data from Nansen shows that smart money holdings have dropped from 11.9 million to 7.1 million VIRTUAL tokens, and whale holdings have decreased from 30 million to 24.4 million since May 11. This sell-off could indicate short-term profit-taking or caution ahead of key macro events.
Virtuals Protocol is poised for a potential triple-digit gain amid a powerful rebound in AI tokens and improving technical structure. While on-chain selling by whales and declining revenue from previous highs introduce some caution, bullish momentum remains intact for now.
Should NVIDIA’s earnings deliver the expected boost to AI markets, VIRTUAL could reclaim its all-time highs turning it into one of the top altcoin performers of 2025. However, traders should remain alert for volatility, especially as whale exits and macro sentiment continue to shape the market.
