Velvet (VELVET) has extended its bull run over the past 24 hours, rising 29% at press time, as market sentiment continues to build.
Fundamental dynamics suggest that the asset could consolidate its position and extend those gains further over the next two trading sessions.
Rack growth supports Velvet’s bullish structure
Velvet’s bullish outlook derives its strength from its high number of holders. CoinMarketCap data shows how many wallets you hold velvet The pair continued to rise, reaching a new all-time high in the past 24 hours.
The number of coin holders jumped by more than 2,500 in July alone, rising from 22,830 to 25,450 at the time of writing. This accumulation has directly increased prices, with assets gaining more than 80% between July 7 and now.
Rising shareholder numbers only tell part of the story, with sentiment adding weight to the move.
Velvet’s social footprint has expanded alongside it, with token engagement rising 38% to 1,820 over the past 24 hours on CoinMarketCap. Mindshare measures the number of mentions and interactions a token attracts within a 24-hour window.
Likewise, the broader social sentiment score reached 6.34 out of 10, indicating a bullish sentiment among investors that could fuel a further rise in the price.
Frequent traders are long on Velvet
Early in the day, even with the price rising, most markets are still short of velvet, with the funding rate remaining in negative territory. This has since reversed, with the funding rate swinging sharply to around 0.0023% at the time of writing, suggesting that long positions are now outpacing short positions across the market.
Short sellers are now bearing the brunt, with liquidated short positions totaling around $182,000 over the past 12 hours versus just $20,260 in liquidated long positions across the same stretch. The gap became more pronounced over the past four hours, with shorts losing $71,620 while longs lost just $784.
New capital also began to flow in behind the bullish case, with open interest, a measure of the total value of leveraged contracts outstanding in the asset’s perpetual market, rising 79% to nearly $42 million.
With this capital backing VELVET, the asset appears poised to retain its bullish position in the short term at least.
Liquidation levels indicate further upside
CoinGlass’ liquidation heat map suggests there is room for Velvet to rise further. Groups of liquidation levels remain stacked above the current price, and those pockets tend to act as magnets that attract the price towards them.
The downside cannot be ruled out either, although most of the groups below lie near the current price, suggesting that any pullback will remain shallow.
Currently, the prevailing momentum leaves the price in a position to trend higher from its current level, extending the range it has built since early July.
Final summary
- VELVET holders surged past 25,400 to a new all-time high in July, resulting in an 80% price increase since the 7th.
- The financing price turned positive as short trades absorbed significant liquidations, suggesting that traders have rallied behind the rally.
