VIRTUAL/USDT: Bright Recovery or Bull Trap? Analyzing the Current Situation

I just looked at the VIRTUAL/USDT chart — and it looks truly impressive! The coin shows a strong rebound +22.65% with a price around $1.7574. But what’s behind this beautiful green candle? Let’s figure it out.

What we see in technical analysis:

**Strengths:**

· RSI is soaring: RSI(24) at 94.58 — this signals incredible momentum. The growth is clearly not exhausted.
· Volumes speak for themselves: Current volume is 37.48M compared to MA5 (24.10M) — a fresh influx of capital is evident.
· Key level broken: The price confidently broke away from the daily low of $1.3304.

**Worrisome signals:**

· Extreme overbought condition: RSI(6) at 76.10 and the KD indicator with K=77 — the coin is in a zone where a correction may occur.
· MACD shows divergence: During the price increase, MACD (0.0776) lags behind the signal line — a classic sign of a potential reversal.
· Resistance nearby: The level at $1.8635 (24h High) could become a significant obstacle.

My opinion:
Such sharp movements always make one think. On one hand — the coin demonstrates fantastic dynamics. On the other — all oscillators are shouting about overbought conditions.

What I would do as a trader:

· Take profits in the $1.80-1.85 zone
· Wait for a breakout above resistance at $1.8635 with consolidation above
· Or a correction to supports at $1.55-1.60 for additional buying

Conclusion: The recovery is bright but suspiciously sharp. I will believe in continued growth only after a healthy correction or confident consolidation above $1.86. What do you think — is this the start of a new rally or a trap for inexperienced bulls?

#VIRTUAL