Velvet [VELVET] extended its bullish run with an impressive 24% gain made over the past day, at press time.
Furthermore, with the VELVET tokens above their key EMAs, the bears seem to be on top as they eye the upcoming resistance at $1.75. Is the expected uptrend likely to materialize?
VELVET Open Interest surges
VELVET’s derivative markets have seen a rise in trading volume.
As per the latest data, the Open Interest (OI) on the network rose by 32% to $23.8 million in the last 24 hours, reflecting that traders are increasing their positions with the rising prices of the token.
The fact that the OI on VELVET is rising amid a 24% price gain reflects that fresh money is flowing into the market.
Short liquidations hit $202K
That’s not all; the derivatives market is also showing a strong imbalance between bullish and bearish positions. Short liquidations reached $202,400, roughly four times the $59,100 recorded in long liquidations.
The divergence indicates that bearish positions are being squeezed as VELVET continues to move higher, potentially adding further buying pressure to the rally.
Trading volume hits monthly highs
Spot market activity is providing another confirmation of the ongoing momentum.
VELVET’s trading activity has stayed at month-high volume for five straight days, demonstrating continued market activity during the current advance. High volume may continue to supply the necessary liquidity for buying to test resistance on higher levels.
VELVET trades above key EMAs
The strengthening market activity is reflected clearly on VELVET’s daily chart.
The token is currently trading above all key Exponential Moving Averages (EMAs). Holding above these levels indicates that short- and medium-term momentum remains firmly tilted toward buyers.
A sustained position above the EMAs could keep the current bullish structure intact and increase the probability of a move toward $1.75.
Can VELVET reach $1.75?
Various bullish indicators are backing the recent surge in the price of VELVET.
Technically, the token is also trading above its key EMAs. Therefore, $1.75 now stands out as the next major resistance. If buyers maintain control and derivatives activity continues expanding, VELVET could extend its current rally toward the $1.75 level.
On the other hand, a sharp decline below the key EMAs would weaken the bullish setup and expose the token to a deeper correction.
Final Summary
- VELVET surged 24% as Open Interest jumped 32% to $23.8 million.
- The network’s short liquidations hit $202K, as bulls target $1.75.
