Velvet [VELVET] has extended its bullish run over the past 24 hours, climbing 29% at press time, as market sentiment continues to build.
The underlying dynamics suggest the asset could strengthen its footing and stretch those gains further across the next couple of trading sessions.
Holder growth underpins Velvet’s bullish structure
Velvet’s bullish outlook draws its strength from a surge in holders. CoinMarketCap data shows the number of wallets holding VELVET has kept climbing, reaching a new all-time high within the past 24 hours.
Holder numbers have jumped by more than 2,500 in July alone, rising from 22,830 to 25,450 at the time of writing. That accumulation has fed directly into price, with the asset gaining over 80% between July 7 and now.
Rising holder counts tell only part of the story, since sentiment has added its weight to the move.
Velvet’s social footprint has expanded alongside it, with the token’s mindshare climbing 38% to 1,820 over the last 24 hours on CoinMarketCap. Mindshare gauges how many mentions and interactions a token attracts within a 24-hour window.
The broader social sentiment score has likewise reached 6.34 out of 10, pointing to a bullish lean among investors that could feed a further leg up in price.
Perpetual traders flip long on Velvet
Early in the day, even as the price climbed, most of the market still sat net short on Velvet, with the Funding Rate holding in negative territory. That positioning has since flipped, with the Funding Rate swinging sharply to around 0.0023% as of writing, signaling that long positions now outweigh shorts across the market.
Short sellers are now bearing the brunt, with liquidated short positions totaling roughly $182,000 over the last 12 hours against just $20,260 in liquidated longs across the same stretch. The gap has grown starker over the past four hours, where shorts lost $71,620 while longs gave up just $784.
Fresh capital has also begun flowing in behind the bullish case, with Open Interest, a measure of the total value of outstanding leveraged contracts in an asset’s perpetual market, surging 79% to roughly $42 million.
With that capital underpinning VELVET, the asset looks set to hold its bullish footing over at least the short term.
Liquidation levels point to further upside
CoinGlass’s liquidation heatmap points to room for Velvet to push higher still. Clusters of liquidation levels remain stacked above the current price, and those pockets tend to act as a magnet that draws price toward them.
The downside cannot be dismissed either, though most of the clusters below sit close to the current price, which suggests any pullback would stay shallow.
For now, the prevailing momentum leaves price positioned to trend further above its current level, extending the run it has built since early July.
Final Summary
- VELVET holders climbed past 25,400 to a new all-time high in July, driving an 80% price gain since the 7th.
- The funding rate flipped positive as shorts absorbed heavy liquidations, signaling traders have swung behind the rally.
