Velvet [VELVET] has been climbing, tracking the bullish trend across the broader market over the past 24 hours and posting a gain of roughly 10% in that window, even as the move unfolds against a heavier 30-day pullback.
The market setup suggests VELVET can hold its near-term outlook, though a lingering downside risk still faces traders going long. One worth watching closely if the recent bounce is to turn into sustained upside rather than a pause in the wider decline.
Deleveraging risk shadows VELVET
A clear signal running through VELVET’s recent surge shows a flush-out of over-leveraged positions from the market drove this run.
For context, perpetual market capital flow points to a sustained netflow over the past 30 days, with net sales dominating and reaching a reading of $25.38 million, according to CoinGlass. That flush-out cost VELVET 18% across the same 30-day stretch.
More recently, net sales pushed roughly $256,000 out of the market over the past 24 hours as sell-side flow stayed dominant.
The move marks a deleveraging phase, where overexposed positions get cut and the market tempo returns to normal.
The positive read, though, is that the Funding Rate has stayed positive through the flush, implying traders still hold a bullish, longer-term rally outlook for the price. Past performance backs that view, with VELVET posting a year-to-date gain of roughly 200%.
Spot flows keep accumulating
A growing accumulation trend runs through the Spot market too. Netflow measures the gap between inflow, where sellers move coins onto exchanges, and outflow, where buyers pull coins into private wallets, and the latter now holds control.
Over the past 24 hours, the total VELVET moved into private wallets, likely for long-term holding, surged to roughly $182,000, with netflow sitting around $22,000.
A similar pattern showed up at the week open, as trading closed with heavier outflow and $529,000 worth of VELVET left exchanges. Accumulation at this pace strengthens the base for a potential rally and helps sustain the asset’s most recent leg up.
Community sentiment, which gauges how bullish a market is on a scale of -10 to 10, puts VELVET at a reading of roughly 5.77, pointing to a strong bullish outlook that could carry its performance over the coming days.
VELVET decline risk stays on the table
The risk has not cleared, and VELVET could still see a meaningful price decline, going by the liquidation heatmap.
The heatmap reading on the two-week chart shows a larger cluster packed below VELVET’s press-time price.
The zone between $3.6 and $3.8 stands out as a high-density region, and clusters tend to act as magnets. Where they sit tightly packed, prices often swing down toward the level before stabilizing.
VELVET could still slip to this zone before rebounding higher, setting up a stronger, more established bullish run.
Final Summary
- Spot wallets keep accumulating VELVET with $182,000 moved into private storage and a positive Funding Rate signaling that traders still lean bullish.
- A $25.38 million perp net sales flush over 30 days and dense liquidation clusters between $3.6 and $3.8 leave real downside risk.
Credit: Source link