Markets have a strange tendency to be decisive. At the beginning of this month, VELVET was heavily driven after falling from its peak of $1.85 on June 11 to about $0.31, a fall of 83% that left many traders believing that the issue is over. Apparently, the market had other ideas.
From Fear Selling to Aggressive Buying
After finding support near $0.31, The price of VELVET shares he gradually began to renew his wishes. By June 22, the token had quietly climbed back to the $0.52 area without attracting much attention.
Then June 23 arrived. Forced selling also reduced prices, but instead of further damage, buyers came in strongly. The result was a hammer candle with a low near $0.41, a technical formation that many traders associate with wanting to return to the market.
From the bottom, VELVET has risen to $1.45, making gains of over 250%.
Emerging Markets Suddenly Wake Up
The move wasn’t happening quietly under the hood. Open interest exploded 243%, reaching $170.74 million as traders entered contracts at a rapid pace. Meanwhile, the output volume jumped 1,090% to $1.27 billion, showing how quickly participation has returned. Such actions often leave the injured behind.
Short Sellers Are the Fuel for the Rally
Liquidation data showed $2.87 million in positions were liquidated during the move. Of that figure, $2.51 million came from the small position, meaning the rally was fueled by a short-term squeeze when bearish bets were forced to close.
The helper looked like Velvet including and Aerodrome, which introduced better pricing and less user churn on an unsecured platform.
As many had already written a few weeks before, the price action of VELVET has given a stark reminder that crypto markets often do not reward long-term cooperation.
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