VELO trades near $0.0135 as price compresses below the 50 EMA, with $0.0164 acting as firm dynamic resistance.
Despite oversold RSI levels, no confirmed reversal has formed, and price remains trapped under short-term resistance bands.
A potential inverse head and shoulders pattern suggests a breakout toward $0.025 if $0.016 clears with volume confirmation.
VELO continues to trade within a compressed range as bulls defend a critical volume node near $0.013563. Technical signals suggest a pivotal move could be approaching, with resistance forming just above at the $0.016 zone.
Price Compresses Beneath Major Moving Averages
The VELO/USDT pair has remained capped by dynamic resistance from the 50 EMA, now at $0.016424. Price action shows compression around the Volume Profile Point of Control, signaling a potential inflection point. Daily volume holds steady, despite low volatility across early May.
Source: Dark Horseman
As we can see from the post above, one bearish analyst, Dark Horseman, has expressed caution regarding VELO’s current price behavior. Despite Bitcoin nearing $98K, VELO failed to follow with upside momentum. According to Dark Horseman, the asset’s repeated rejections at the 50 EMA underscore a lack of strength.
He has provided insights showing that $0.016424 marks a strong resistance zone, reinforced by prior February failures. Below, he highlights support at $0.008178 and $0.005279, noting these as potential fallback levels if bullish efforts fail. Meanwhile, VELO hovers at the VP-POC, confirming this level as a zone of prolonged equilibrium.
Dark Horseman also notes that VELO has traded in a tight band between $0.0127 and $0.015 since early April. With the Stochastic RSI oversold and no bullish reversal formed, he cautions that the price must break above $0.0148 and $0.0167 to confirm recovery. Until then, he may exit his position at break-even or with minimal loss.
Reversal Pattern Hints at Bullish Momentum
On the flip side, analyst ChartNerd presents a contrasting analysis based on a textbook inverse head and shoulders pattern. He sees accumulation between $0.009000 and $0.016000 as part of a potential trend reversal. This structure has formed gradually since March, with each low holding at higher levels.
Source: ChartNerd
According to ChartNerd, the neckline rests at $0.016000 and defines the breakout level needed for confirmation. He notes volume remained steady during the formation, with the right shoulder building on lighter selling pressure. If the pattern completes, he projects an upside target of $0.025000, consistent with January resistance.
