Velvet (VELVET) is up 29% at the time of writing, extending its uptrend over the last 24 hours as market sentiment continues to rise.
Fundamental dynamics suggest that the asset could strengthen its fundamentals and further extend these gains over the next few trading sessions.
Conservative growth supports Velvet’s bullish nature
Velvet’s bullish outlook is powered by the rise in shareholders. CoinMarketCap data shows the number of wallets held VELVET It continues to climb, reaching an all-time high in the last 24 hours.
The number of owners increased by more than 2,500 in July alone, from 22,830 to 25,450 at the time of writing. This accumulation was directly reflected in prices, and the asset gained over 80% in value since July 7.
The increasing number of owners tells only part of the story because sentiment has added weight to the movement.
Velvet’s social footprint has expanded along with it, with the token’s share of mind rising by 38% to 1,820 on CoinMarketCap in the last 24 hours. Mindshare measures how many mentions and interactions a token receives within a 24-hour window.
The broader social sentiment score likewise reached 6.34 out of 10, indicating a bullish sentiment among investors that could create another increase in price.
Continuing investors are taking long positions in Velvet
Earlier in the day, most of the market remained net short on Velvet even as the price rose and the Funding Rate remained in negative territory. This positioning has since reversed and the Funding Rate has fluctuated sharply towards around 0.0023% as of press time, signaling that long positions now outweigh short positions in the market.
While short positions liquidated in the last 12 hours totaled roughly $182,000, there was only $20,260 in liquidated long positions in the same period, and short sellers are now bearing the brunt. The gap has become even sharper in the last four hours; short positions lost $71,620, while long positions lost only $784.
Fresh capital also began flowing in following the upward trend, with Open Interest, a measure of the total value of leveraged contracts outstanding in an asset’s perpetual market, rising 79% to roughly $42 million.
With this capital supporting VELVET, the asset looks set to maintain its uptrend, at least in the short term.
Liquidation levels point to upward trend
CoinGlass’ liquidation heat map indicates that Velvet could move higher. Liquidation level clusters remain stacked above the current price, and these pockets act as a magnet that pulls prices towards them.
While most of the clusters below are close to the current price, the downside cannot be ignored either, suggesting that any pullback will remain shallow.
For now, the prevailing momentum has the price trending further above its current level, extending the rally it has been building since early July.
Final Summary
- VELVET holders climbed to an all-time high in July, surpassing 25,400, marking an 80% price increase since the 7th.
- The funding rate turned positive as short positions absorbed heavy liquidations, signaling that investors were getting behind the rally.
