Virtuals Protocol: +16,850% Surge Nearing Its End?

Virtuals Protocol has experienced an astronomical +16,850% surge in price over the past 164 days, marking a parabolic advance that appears to be nearing exhaustion. Price action suggests that the final 5th wave of this bullish cycle may be completing, raising the question: Is Virtuals Protocol set for a correction, or is there still upside potential?

Key Observations:

1.) End of the 5th Wave:

• The Elliott Wave count indicates that the asset is likely completing the final 5th wave of a large bullish cycle.
  

• Parabolic moves of this magnitude typically end with a sharp correction as profit-taking accelerates.
  

2.) Weekly RSI Overbought:

• The RSI on the weekly timeframe is at 95, signaling extreme overbought conditions.
  

• Such elevated RSI levels are unsustainable and often precede corrections to reset market momentum.
  

3.) 6 Consecutive Bullish Weekly Candles:

• A string of 6 green weekly candles suggests strong bullish momentum but also hints at exhaustion as buyers may struggle to sustain such momentum.
  

4.) Fibonacci Target and Weekly Open Confluence:

• Using a Fibonacci retracement from the current wave, the 0.618 level aligns perfectly with the Weekly Open (wOpen) at $2.711.
  

• This confluence zone serves as a strong short-term take-profit target for short sellers or a potential re-entry point for bulls looking for a correction.
  

Outlook:

• Bearish Scenario: The completion of the 5th wave and the extreme overbought RSI suggest a correction is imminent. A retrace towards the 0.618 Fib level ($2.711) is a highly probable scenario.
  

• Bullish Continuation: For further upside, the price must consolidate and find fresh buying volume to support continuation beyond the current highs.
  

Conclusion:

Virtuals Protocol is flashing clear signs of exhaustion, with extreme weekly RSI levels and a completed Elliott Wave cycle. Traders should watch the $2.711 zone closely as a potential correction target, with the 0.618 Fibonacci retracement and Weekly Open providing strong confluence.