Velvet (VELVET) has surged by 29% over the past 24 hours, reflecting a significant increase in its holder base and market sentiment. This uptick suggests a strong potential for continued upward momentum as new capital flows into the asset.
Holder Growth Fuels Price Increase
The number of VELVET holders has reached an all-time high, jumping from 22,830 to 25,450 in July alone, representing an increase of over 2,500 holders. This surge in ownership has contributed to an impressive price rise of over 80% since July 7. According to CoinMarketCap, the social engagement surrounding VELVET has also grown, with a 38% increase in its mindshare to 1,820 mentions in the last day.
Market Dynamics Shift
As the price climbed, initial market sentiment was bearish, with many traders taking short positions. However, this sentiment shifted dramatically, as the Funding Rate turned positive, indicating a strong preference for long positions. Recent data shows that approximately $182,000 worth of short positions were liquidated in the past 12 hours, compared to just $20,260 in liquidated longs.
The overall Open Interest in VELVET's perpetual market surged by 79%, reaching about $42 million. This influx of capital supports the bullish outlook for the asset, positioning it well for further gains in the short term.
Liquidation levels also indicate potential for continued price increases, with several clusters above the current trading price acting as magnets for upward movement. While risks remain, with some liquidation points below the price, the overall trend favors further growth as momentum builds.
This material is informational and should not be considered financial advice.
