Velvet’s cryptocurrency displayed significant strength, rising 29% within a day as its holder base expanded sharply. More than 2,500 new wallets joined the network in July, pushing the total above 25,400 for the first time. This influx of holders reinforced the asset’s upward trajectory, which has seen an 80% price increase since early July.
Market indicators further support Velvet’s bullish stance. Social engagement metrics on CoinMarketCap recorded a 38% increase in mindshare—an indicator measuring mentions and interactions—reaching 1,820 in 24 hours. Investor sentiment also strengthened, with a social sentiment score rising to 6.34 out of 10, suggesting growing investor optimism that could sustain buying pressure.
Trader behavior has shifted noticeably with the Funding Rate moving from negative to positive territory, reflecting a change from net short positions to net long positions. This reversal corresponds with a wave of short position liquidations amounting to about $182,000 in the past 12 hours, compared to $20,260 in long liquidations. Over the last four hours, the imbalance intensified as shorts faced greater losses while longs experienced minor liquidations.
The asset’s Open Interest in perpetual contracts surged 79% to approximately $42 million, indicating fresh capital entering leveraged positions and reinforcing the bullish momentum in Velvet’s market. According to liquidation heatmaps, clusters of liquidation levels above the current price may act as magnets, potentially attracting the price further upward. Meanwhile, potential downside appears limited, as liquidation levels below are close to the current price, suggesting any pullbacks could be shallow.
With sustained accumulation, rising social engagement, and shifting trader dynamics, Velvet is positioned for continued strength over the near term. Despite the inherent volatility in crypto markets, these factors collectively underpin a bullish outlook for the token’s near-term price action.