VELVET stalls at $2—How deep could the current pullback go?

ambcrypto2026-07-02 tarihinde yayınlandı2026-07-02 tarihinde güncellendi

Özet

Velvet (VELVET) experienced a bullish push above the key $2.00 resistance on June 29, reaching a high of $2.17, fueled by partnership news with Aerodrome Finance. However, momentum has since slowed, with an 11.5% price correction in 24 hours and a 27.1% drop in trading volume. Technical analysis shows mixed signals. While the On-Balance Volume (OBV) indicates sustained buying pressure, the Chaikin Money Flow (CMF) has turned negative, signaling significant capital outflows and short-term distribution. The overall structure remains bearish on the 1-day chart, though the recent correction found support at the 20-day moving average. Market data suggests the current pullback represents controlled selling pressure rather than a full trend reversal. Key supports to watch are the $2.00 level and the 20-day moving average near $0.75. The risk-to-reward ratio for new long positions is currently unfavorable, but the steady spot Cumulative Volume Delta (CVD) and funding rate indicate underlying bullish strength. Traders may consider using a deeper pullback as a potential buying opportunity.

Velvet [VELVET] has continued its bullish trend. Powered by the Aerodrome Finance partnership news, the token price briefly pushed past the $2.0 round-number resistance on Monday, June 29.

Since then, its momentum has slowed down. The altcoin saw an 11.5% correction in the past 24 hours, and its daily trading volume has fallen by 27.1%, according to CoinMarketCap statistics.

Assessing if Velvet can reach its projected extension targets

AMBCrypto had reported on the bullish catalysts, technical indicators, and price structure, but also warned of increased volatility. The rally to $2.17 has subsided within the past 72 hours.

The 1-day structure was bearish despite the deep correction from $1.922 to $0.302 in the second week of June. Interestingly, this retracement halted at the 20-day moving average dynamic support.

Since this correction, VELVET has rallied to the local $1.922 highs once again, climbing to $2.17 before pulling back in the past three days as discussed earlier.

The volume indicators gave mixed signals. The OBV was rising higher to show steady buying pressure, but the CMF sank below -0.05 in the past couple of days. Its current reading of -0.17 highlighted severe capital outflows from the VELVET market.

This incongruence between the volume indicators meant that there was short-term distributory pressure on the altcoin. Overall, the buying volume in recent weeks has been high, and the current wave of selling has not dented it.

Traders’ call to action- Use a pullback to buy

The risk-to-reward ratio was too low for traders to go long now. At the same time, there was no guarantee that VELVET had run its uptrend to the fullest and would now descend toward $0.48 and lower once again.

Though the OI was in decline, the spot CVD remained steady, as did the funding rate. This suggested short-term bearish momentum, but there was a good chance VELVET bulls would try to claim the $2 support once more.

The 20-day moving average at $0.75 was an interesting dynamic support to keep an eye on in case of a pullback.

Final Summary

Velvet had rallied to a high of $2.17 but was unable to flip the $2 psychological level from resistance to support.
It is unclear how deep the current pullback could go, but the evidence pointed toward controlled short-term distributory trends instead of full-blown profit-taking.

İlgili Sorular

QWhat was the key event that helped push Velvet's price briefly above $2.0?

AThe key event was the partnership news with Aerodrome Finance.

QAccording to the article, what are the conflicting signals shown by the volume indicators (OBV and CMF)?

AThe OBV was rising, showing steady buying pressure, while the CMF sank below -0.05, indicating severe capital outflows. This shows short-term distributory pressure despite high overall recent buying volume.

QWhat does the article suggest as a potential dynamic support level in case of a pullback for VELVET?

AThe article suggests the 20-day moving average at $0.75 as an interesting dynamic support level to watch in case of a pullback.

QBased on the data from Coinalyze, what do the steady spot CVD and funding rate suggest despite declining Open Interest?

AThe steady spot CVD and funding rate, despite declining Open Interest, suggest short-term bearish momentum but a good chance that VELVET bulls will try to reclaim the $2 support level again.

QWhat is the article's overall conclusion about the nature of the current pullback for VELVET?

AThe article concludes that while the depth of the pullback is unclear, the evidence points toward controlled short-term distributory trends rather than full-blown profit-taking by investors.

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