Velvet (VELVET) extended its uptrend over the past 24 hours, climbing 29% at press time as market sentiment continues to strengthen.
The underlying momentum suggests that the asset could strengthen its fundamentals and further extend these gains over the next two trading sessions.
Holder’s growth supports Velvet’s bullish structure
Velvet’s bullish outlook draws strength from an increase in holders. Data from CoinMarketCap shows that the number of wallets holding VELVET has continued to increase, reaching a new all-time high in the last 24 hours.
The number of holders jumped by more than 2,500 in July alone, from 22,830 to 25,450 at the time of writing. This accumulation has directly contributed to the price, with the asset gaining over 80% between July 7 and today.
The rise in holders only tells part of the story, as sentiment has added weight to the movement.
Velvet’s social footprint has expanded alongside it, with the token’s mindshare climbing 38% to 1,820 in the last 24 hours on CoinMarketCap. Mindshare measures the number of mentions and interactions a token attracts in a 24-hour window.
The broader social sentiment score also reached 6.34 out of 10, indicating a bullish trend among investors that could fuel further price rises.
Perpetual traders choose Velvet
At the start of the day, even though the price was climbing, most of the market was still short Velvet, with the funding rate remaining in negative territory. This positioning has since reversed, with the funding rate swinging sharply at around 0.0023% at the time of writing, signaling that long positions now outweigh short positions across the market.
Short sellers are now bearing the brunt, with short positions liquidated totaling around $182,000 over the past 12 hours, compared to just $20,260 in long positions liquidated over the same period. The gap widened over the last four hours, where shorts lost $71,620 while longs gave up only $784.
New capital also began to flow behind this bullish scenario, with Open Interest, a measure of the total value of outstanding leveraged contracts in an asset’s perpetual market, surging 79% to around $42 million.
With this capital underpinning VELVET, the asset appears poised to maintain its bullish stance at least in the short term.
Liquidation levels point to further rise
CoinGlass’ liquidation heatmap indicates that Velvet has room to rise further. Clusters of liquidation levels remain stacked above the current price, and these pockets tend to act like a magnet that draws prices toward them.
The downside cannot be ruled out either, although most of the clusters below are close to the current price, suggesting any pullback would remain superficial.
For now, the current momentum leaves the price positioned to move even further above its current level, extending the trend it has been building since early July.
Final summary
- VELVET holders surpassed 25,400 to reach a new all-time high in July, driving prices up 80% since the 7th.
- The funding rate turned positive as shorts absorbed significant liquidations, signaling that traders followed the rally.
