Virtuals Protocol tokens rebounded again on Tuesday, January 14, a day after forming a doji candlestick pattern as its ecosystem tokens rebounded.

virtual protocol (hypothetical) to $2.93, up 32% from this year's low as investors bought the dip.

Most of the tokens in the Virtuals Protocol ecosystem were among the best performers. The value of the GAME token rose by 17.5%, reaching a market cap of more than $172.9 million. Luna stock jumped 30%, while aixbt stock rose 63%, raising its valuation to $546 million. Other high-performing tokens in the ecosystem include Sekoia, Acolyte, TAOCat, and WAI Combinator.

The recovery coincided with a broader rally in the cryptocurrency market, especially in the artificial intelligence agent sector. Other AI agent Tokens, such as ai16zHumans.ai, BasedAI and Orbit were among the biggest gainers in the industry.

It remains unclear whether these gains will hold, as the recovery could be part of a dead cat bounce – a temporary rebound in an asset that is experiencing a long-term downtrend before resuming its decline.

The main danger of the Virtuals protocol is that more than that Profitable investors They sold most of their tokens. As seen below, dividend leader LVT Capital has exited all of its positions in the past few weeks, making millions of dollars.

Virtual price analysis

The daily chart shows that Virtuals Protocol has been on a strong downtrend over the past few weeks, falling from a record high of $5.1250 to $2.8.

The token is currently trading just below the 50% Fibonacci retracement level. On the positive side, it has formed a long-legged doji candlestick pattern, which is characterized by a long lower shadow and a small body. This pattern is often considered a bullish reversal signal.

In addition, VIRTUAL has formed a falling wedge pattern, which is another bullish indicator. Based on these technical signals, the token could see a strong rebound in the coming days, with investors targeting the next resistance level at $4 – representing a potential 40% upside from the current price.

However, a drop below the bottom of the doji candle at $2.2260 would invalidate the bullish outlook. In such a scenario, the next major support level to watch would be $1.50.