The cryptocurrency sector may be stuck in a bear market for a long time, yet some cryptocurrencies are still able to outperform with significant upward moves.
Velvet (VELVET) is a prime example, jumping by four figures in the past month. While some analysts expect further rise in the short term, others warn that the altcoin could be a time bomb.
More assembly?
As of press time, the altcoin is trading at around $1.58 (according to CG), which represents a 250% increase on a weekly scale and a staggering 1,700% pump over the past 30 days.
Its market capitalization has risen to nearly $700 million, making VELVET the 90th largest cryptocurrency. One of the possible catalysts for the price explosion could be the project’s cooperation with AerodromeeFi.
“With integration, you now:
– Get tougher prices
– Less slippage payment
– Benefit from deeper liquidity in every trade
– The ground is filled better automatically He reads.
Later, the project foot Velvet-1: An artificial intelligence (AI) model for on-chain intelligence, which could have also positively impacted the price.
Many analysts have highlighted the currency’s performance and believe it may have more fuel for additional gains. User X encryption with Gopal He claimed The price “constricts within a symmetrical triangle after a sharp upward impulse wave.” He said sellers were still losing control, and set a short-term target of $2.1.
The president also issued an optimistic prediction, He argues The recent breakout attempt shows that buyers remain active after consolidation rather than giving up gains immediately. The analyst claimed that the current structure looks “healthier than 24 hours ago, with the chart moving from recovery mode to expansion mode.”
“If momentum continues and trading volume continues, the market may begin to test areas of higher liquidity that were previously rejected during the first impulsive move earlier this month,” they concluded.
“A short generational opportunity?”
Many other analysts believe that investors should stay away from altcoins as they may see a sharp decline in the near future. Yesterday (June 28), an X Crypto user with Haris ₿ anticipation that VELVET could collapse to $0.90 in the next six hours (which it hasn’t), calling the setup a “short generational opportunity.”
For his part, Fawry Trading Company He claimed That the token is “another Binance Alpha scam also known as CZ.” From his perspective, the token appears to be approaching its peak, but if it crosses $2, it could rise to $8.
The currency’s relative strength index (RSI) reinforces the bearish outlook. The ratio has risen above 80, which means that VELVET has entered the extreme overbought zone and may be on the verge of a collapse. The technical analysis tool ranges from 0 to 100, and anything below 30 is considered a buying opportunity.
this post Viral Altcoin VELVET Booms 1,700% in a Month: More Gains Ahead or a Perfect Short Setup? appeared first on CryptoPotato.
