The price of the Virtuals Protocol rose more than 23,000% in 2024, becoming the best-performing altcoin in the cryptocurrency industry.

virtual protocol (hypothetical) from a year-to-date low of $0.02234 in August to $3.4 on December 27.

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

Virtuals Protocol hopes to become the largest decentralized AI agent network in the cryptocurrency industry by allowing users to create these agents. Some of its top agents have achieved a market value worth millions of dollars. For example, GAME has a market capitalization of more than $304 million, while Prefrontal Cortex Convo Agent and Luna have a market capitalization of more than $100 million.

Virtuals Protocol's price movement has mirrored those of other big AI players such as NVIDIA, Palantir, and Broadcom. All these companies have become giants by focusing on AI solutions. NVIDIA and Broadcom make semiconductors, while Palantir builds software solutions for artificial intelligence.

VIRTUAL has a few potential catalysts in 2025. The most important is The growth of artificial intelligence agentswhich may drive more investors into its network. It will also likely be listed on more exchanges such as Binance and Coinbase. Most of Virtuals' trading volume occurs on exchanges like Bybit, Bitget, and Gate. Listing on other top-tier exchanges would push it higher.

However, many risks remain. The AI ​​industry and its accompanying hype may slow down in 2025, impacting most assets. Furthermore, there are concerns that most AI assets have become greatly overvalued.

The default price faces technical risks

The VIRTUAL token faces bounce and Wyckoff method risks. As shown above, the hypothetical price moved 90% above the 50-day moving average. Therefore, the concept of mean reversion states that the asset often retraces to its historical average. As such, if this happens, VIRTUAL will likely fall sharply to reach the 50-day moving average.

Meanwhile, the Wyckoff method states that assets go through several stages. In this case, the Virtuals protocol remained in the accumulation phase between May and November, which usually has insignificant price movements.

Then I entered the coding phase, which is currently underway. The coin will now move to the distribution phase followed by the devaluation process. If this happens, the coin could drop to $2 soon.