VELVET has become one of the biggest winners in the crypto market over the past 24 hours. The Velvet price has gone up by over 124% to stand at $1.33, leaving far behind both Bitcoin and other popular cryptocurrencies.
There have been signs of increased trading interest, as daily trading volume has increased by over 316%. So, what’s driving the rally? A new DeFi integration appears to be the main catalyst, but there are also a few warning signs that traders shouldn’t ignore.
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What you'll learn 👉
Aerodrome Integration Gives the VELVET Price a Lift
One of the biggest reasons behind the VELVET price rally is its new integration with Aerodrome, one of the largest decentralized exchanges on the Base network. The upgrade gives Velvet users access to deeper liquidity, tighter pricing, and lower slippage when placing trades.
For Velvet, that’s a meaningful improvement. The project runs on a DeFAI framework which leverages the power of AI to allow its users to analyze different opportunities and trade on multiple blockchains including Ethereum, Solana, Base, BNB Chain, and Sonic. Improved liquidity increases efficiency, and the market responds accordingly.
It is evident from the figures below that there was a surge in interest in this particular token almost immediately. The daily trading volume increased by 316% while Velvet’s market cap amounted to $571 million.
Large Team Wallet Transfers Are Raising Questions
Despite the impressive rally seen, not everybody seems to be paying attention to just the good news. There have been reports that wallets belonging to the Velvet community have sent $25 million worth of VELVET coins to centralized exchanges. That has naturally caught the attention of traders.
A transfer to an exchange doesn’t automatically mean a selloff is coming. Projects often move tokens for treasury management, liquidity, partnerships, or operational expenses. Even so, placing that many tokens on exchanges increases the amount that could potentially be sold if the team decides to take profits.
Considering Velvet’s market cap of roughly $571 million and daily trading volume near $67.6 million, a $25 million transfer is large enough for investors to monitor closely over the coming days.
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The VELVET Price Is Approaching an Important Test
We had a look at the VELVET chart, and the technical picture still favors buyers, at least for now. From a price action point of view, the Velvet price moved up from around $0.50 on June 10 to around $0.87 in less than two weeks and continued its uptrend until reaching $1.33. That is a move of over 160% in a relatively short time.
The price breaking above $0.84 means strong interest from buyers, but the next problem is looming on the horizon. Master of Crypto spotted the $0.95-$1.08 range as the level at which sellers were active during past rallies.
Should buyers overcome this range, the next level would be around $1.43, the next liquidity cluster. On the lower end, $1.24 is the first major support level. Losing that area could trigger profit-taking after such a fast move higher.
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What Comes Next for the VELVET Price?
The VELVET price has been driven by a combination of stronger fundamentals, rising trading activity, and growing interest in smaller DeFi projects. The Aerodrome integration has improved the platform’s utility, and the breakout has encouraged momentum traders to step in.
The next step will depend on whether buyers manage to defend the support at $1.24 and create sufficient demand to break the resistance level at $1.43. Simultaneously, the team wallet token transactions will be under observation in order to understand if the tokens stay idle or start entering the market.
For the moment, the VELVET token is the top-performing asset in crypto but after such an explosive growth, the price may stay volatile for some more time.
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