Virtual protocol - wait for a re-entry
Daily RSI had been forming clear negative divergence since 30th Nov. The price broke the previous month high and daily candles formed the bearish engulfing pattern after. In the scenario like this, I usually close a trade or take a partial profit. However, Virtual is one of the most sought after infrastructure AI tokens, therefore, I need to take fundamentals into consideration. I am anticipating the price will resume another leg up, although it might go through some correction or sideway moves first. Instead of taking a short position, I am looking for a re-entry position. As of today, the price has dropped to the previous month high at $4.0 and the price is holding above that level. In the 4H chart, MACD and RSI are moving downwards but still remain in the bull zone. Stochastic (9,3,3) on the other hand has already reached oversold territory and entered into the bull zone.
I will update the analysis on this chart in a day or two. But I think a good entry for long will eventually appear. I definitely won't go short for a strong asset like this, not matter how aggressively pulling down.
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