Latest Velvet (VELVET) Price Analysis

By CMC AI
06 October 2025 11:28AM (UTC+0)

Why is VELVET’s price up today? (06/10/2025)

TLDR

Velvet (VELVET) rose 0.48% in the last 24h, aligning with a broader altcoin uptrend (+28.67% dominance) and specific ecosystem developments. Key drivers:

  1. AI Ecosystem Integration – WachAI partnership for secure DeFi executions (6 Oct 2025)

  2. Technical Momentum – Price holds above key moving averages despite bearish MACD

  3. Market Rotation – Altcoin season index at 63 signals risk-on appetite


Deep Dive

1. AI Ecosystem Expansion (Bullish Impact)

Overview: On 6 October 2025, Velvet integrated WachAI as its verification layer for multi-agent DeFAI, enabling adversarial checks on trades and strategy outputs. This followed Gloria AI’s news terminal adoption in September 2025, which feeds real-time data to Velvet’s 100k+ users.

What this means: Enhanced trust in automated DeFi strategies could drive platform usage, increasing demand for VELVET tokens to pay fees or stake. The Gloria AI integration also positions Velvet as a leader in AI-driven DeFi, attracting speculative interest.

What to watch: WachAI’s impact on Velvet’s Total Value Locked (TVL) and user growth metrics next week.


2. Technical Resilience (Mixed Impact)

Overview: VELVET trades at $0.182, above its 30-day SMA ($0.158) but below the 7-day EMA ($0.1815). The RSI-14 (56.43) suggests neutral momentum, while the MACD histogram (-0.0044) signals short-term bearish divergence.

What this means: Buyers are defending the $0.158–$0.179 zone (30-day range), but weakening momentum raises consolidation risks. A sustained break above $0.192 (Fibonacci 50% level) could reignite bullish sentiment.

Key level: $0.163 (Fibonacci 61.8% support).


Conclusion

Velvet’s modest 24h gain reflects a blend of strategic AI partnerships and technical stability, though broader altcoin momentum plays an equally critical role. Traders appear cautiously optimistic about its DeFAI infrastructure upgrades but await clearer bullish signals.

Key watch: Can VELVET sustain buying pressure above $0.18 as the Altcoin Season Index climbs?

Why is VELVET’s price down today? (04/10/2025)

TLDR

Velvet (VELVET) fell 1.19% in the past 24h, contrasting with its +193.69% 30-day surge. Key drivers:

  1. Profit-taking pullback after parabolic 30-day gains

  2. Lower trading volume (–25.5%) amplifying volatility

  3. Neutral technicals signaling consolidation

Deep Dive

1. Post-Rally Profit-Taking (Bearish Impact)

Overview: VELVET’s price rose 485% over 90 days, with a 193% 30-day spike. Such rapid gains often trigger profit-taking, especially in low-float assets (circulating supply: 89.9M of 1B).

What this means: Traders likely rotated gains into newer narratives, given the Altcoin Season Index’s 26% monthly rise. The 24h turnover ratio of 0.38 signals moderate liquidity, making exits more impactful.

2. Volume Decline & Market Sentiment (Mixed Impact)

Overview: Trading volume dropped 25.5% to $6.4M, reducing price stability. Meanwhile, the broader crypto market rose 1.17%, suggesting VELVET underperformed sector momentum.

What this means: Lower volume magnifies price swings. The neutral Fear & Greed Index (59) reflects caution, potentially diverting capital to large caps like BTC (+58.3% dominance).

3. Technical Consolidation (Neutral Impact)

Overview: The 14-day RSI (59.09) shows no overbought pressure, while the MACD histogram (–0.0041) hints at bearish momentum. Prices hover near the 30-day SMA ($0.1515), a key support.

What this means: The pullback aligns with typical consolidation after vertical rallies. A sustained hold above $0.15 could renew bullish momentum.

Conclusion

VELVET’s dip appears driven by natural profit-taking after extreme gains, compounded by thinner liquidity. While technicals suggest consolidation, its AI-driven DeFi narrative and recent exchange listings (e.g., Binance, KuCoin) retain long-term upside potential.

Key watch: Can VELVET stabilize above its 30-day SMA ($0.1515) to attract renewed buying?

CMC AI can make mistakes. Not financial advice.