ambcrypto.com
Velvet [$VELVET] surged 25%, extending its 90-day gain to 548%.
Retail traders appeared to drive much of the move. The whale-retail delta remained negative, indicating retail activity stayed dominant.
However, a slight uptick suggested whales may have contributed to the rally. The key question is whether $VELVET’s momentum can withstand rising downside risk.
Could $VELVET fall after its rally?
The Liquidation Heatmap showed a strong concentration of liquidity below $VELVET.
Liquidation clusters mark levels where leveraged positions could be forced to close. These areas may attract price, but do not guarantee a move.
The one-month chart showed a few clusters above $VELVET’s price. That left limited nearby upside liquidity.
By contrast, a large downside cluster formed between $0.19 and $0.14. The area carried deeper unfilled liquidity. This kept the zone in focus despite $VELVET’s rally. A reversal could expose those lower levels.
The chart showed liquidation concentrations of $15,960 for longs and $53,870 for shorts.
Both readings suggested limited nearby leverage buildup. Even so, $VELVET could still face a pullback after its sharp rally.
Are $VELVET stakers taking profits?
Staking activity also weakened as users pulled capital from $VELVET’s protocol over the past day.
$VELVET staking supports governance participation and offers yield to token holders. However, lower staking may suggest that some holders stopped pursuing yield after recent gains.
Over the past day, staked $VELVET fell by $160,000 to roughly $1.5 million.
Since July 14th, the total has declined from $2.26 million. That represented a drop of nearly $760,000. The decline did not confirm direct token sales. However, holders can unstake tokens before selling, keeping profit-taking risk in focus.
Final Summary
- $VELVET price rose 25% and extended its 90-day gains to 548%.
- Total staked value dropped to about $1.5 million, suggesting some holders may have reduced their yield positions.