VELVET recently clocked a massive 54% price increase, bringing the token to a critical crossroads at the $1 mark. This psychological barrier is currently the site of intense volume as market participants debate whether the momentum can sustain a further rally or if a correction is overdue. The price action highlights a classic struggle between short-term momentum and long-term profit-taking.
Data suggests a growing divergence between market segments. Leveraged traders are doubling down on long positions, eyeing a potential move toward $1.60 to capitalize on current volatility and liquidation hunting. However, spot holders—many of whom were positioned during the previous consolidation phase—are actively cashing out, providing significant sell-side resistance that could cap gains in the immediate term.
Investors should closely monitor the $1.00 support zone in the coming sessions. If the spot market sell-off exhausts itself, the leveraged pressure could catapult the price toward the $1.60 resistance level. Conversely, a failure to hold the $1 psychological floor could trigger a cascade of long liquidations, potentially erasing the recent 54% gains and sending the token back toward its baseline.