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?