Recently, the entire crypto scene has been buzzing with the DeFAI sector, with several coins experiencing massive gains. VELVET has definitely emerged as a dark horse, generating a lot of chatter lately. It has gone through a complete emotional cycle with wild price swings, so today let’s break down the fundamentals, market sentiment, and chart patterns in detail.
First off, let's talk about the underlying fundamentals that everyone is buzzing about. This isn't just another hype-driven aircoin. The project focuses on AI-powered decentralized asset management, merging computational intelligence with on-chain DeFi operations, hitting the sweet spot of the current hot narratives: AI + DeFi.
The tokenomics is designed with built-in locking and deflationary mechanisms. Users can lock their tokens to earn dividends and governance rights, while the AI computational power consumes and continuously burns the associated tokens, gradually reducing the circulating supply over the long term. Plus, we have top market makers providing liquidity, and it’s listed on Binance's premier platform. The ecosystem partnerships are still expanding, which is a solid foundation compared to a bunch of meme coins with no real-world application. This is what gives it the potential to experience a tenfold bullish wave.
Looking at the complete cycle of market sentiment, the price movement is a true reflection of the most genuine fund sentiment.
For most of May, the price was stuck around 0.09, grinding sideways for a long time, shaking out the impatient retail traders, and quietly consolidating low-position chips; come June, the market sentiment ignited, with new funds flooding in, and the price skyrocketed directly, hitting a peak of 1.922 USDT. The short-term surge was explosive, with the 24-hour trading volume hitting 440 million USDT, and the entire community and trading forums were buzzing with discussions, pushing FOMO to its peak.
After the frenzy, profit-taking quickly led to a price drop, crashing down to 0.3551, and panic selling ensued, with bearish sentiments rising. But after the panic subsided, the trend quickly turned around, currently priced at 0.4975, with a daily counter-trend surge of 26.81%. The volume at the end of the downtrend has shrunk, while the rebound volume is warming up, indicating that low-position funding has quietly entered the market, with sentiment gradually shifting from extreme pessimism to a slow recovery.
On the daily candlestick chart, the signals are pretty clear: after a major drop, there's no continued downtrend, and we quickly see a rebound with a bullish candle. The MACD indicator hasn't completely reversed the bullish trend; there's solid support forming around 0.35, and the selling pressure has mostly been cleared out. The immediate resistance above is looking at the intraday high of 0.64, and whether it can strengthen again depends on if the incremental funds can keep flowing into the DeFAI sector.
Important risk warning
1. The volatility of cryptocurrencies is extremely high, and VELVET is considered a low-market-cap altcoin, heavily dependent on funds and market sentiment, with no stable upward guarantee. All content in this article is solely for market analysis and should not be construed as any buying, going long, or holding trading advice.
2. Margin trading carries extremely high risk, spikes, and liquidations