Velvet Price Prediction: Bulls Regain Control as VELVET Eyes a Break Above $0.77

• VELVET holds above major EMAs as bullish momentum strengthens toward key resistance.
• Open interest remains elevated, signaling traders still expect further upside potential.
• Balanced exchange flows suggest steady accumulation continues despite recent inflows.

Velvet (VELVET) extended its recovery this week after posting another solid daily gain, signaling that buyers continue to regain confidence. The token traded around $0.64 after climbing nearly 15% over the past 24 hours and more than 32% during the last seven days. Rising trading volume also highlighted stronger market participation, while the market capitalization approached $270 million. 

Although VELVET remains well below its June peak near $2.16, the latest rebound suggests that bullish momentum continues to build. Traders now watch whether the token can maintain its recovery and challenge key resistance levels in the coming sessions.

Technical Recovery Shifts Market Sentiment

VELVET recently bounced from its post-rally correction and reclaimed several important moving averages. The price now trades above the 50-day EMA at $0.538 and the 100-day EMA at $0.399. Additionally, it continues to hold above the 20-day EMA near $0.619, which now serves as immediate dynamic support.

The 200-day EMA remains much lower around $0.282, reinforcing the broader bullish market structure. Meanwhile, the Stochastic RSI continues to rise after recovering from oversold conditions. This shift indicates improving momentum as buyers gradually regain control.

The next challenge sits near the $0.767 Fibonacci retracement level. A successful breakout above that barrier could encourage another advance toward $1.03. 

Furthermore, sustained buying pressure may allow the token to target $1.25 and eventually $1.43. However, losing the 20-day EMA could expose VELVET to another decline toward the stronger support around $0.54.

Derivatives Activity Points to Renewed Interest

Open interest trends also reveal changing market sentiment. Earlier this year, derivatives activity remained relatively quiet, reflecting limited speculative demand. However, conditions changed dramatically during June as fresh capital entered the market alongside the sharp price rally.

Open interest eventually climbed above $230 million before falling during the subsequent correction. Despite that decline, current open interest near $36.6 million remains significantly higher than levels recorded during the first months of the year. Consequently, traders continue monitoring whether fresh positions return to support another leg higher.

Exchange Flows Suggest Accumulation Continues

Spot exchange flows present another encouraging signal for longer-term investors. A notable inflow during December indicated increased exchange deposits and possible selling activity. However, that trend reversed during January and early February as investors consistently withdrew tokens from exchanges.

Those persistent outflows often reflect accumulation because holders move assets into private storage instead of preparing them for sale. Moreover, exchange flows have remained largely balanced since March, indicating steady market conditions.

Recent data recorded a modest inflow of roughly $954,600 on July 14. While fresh deposits could increase short-term volatility, they remain relatively small compared with previous movements. Hence, VELVET’s overall outlook remains cautiously optimistic as improving technical strength, stable derivatives activity, and balanced exchange flows continue supporting the ongoing recovery.

Technical Outlook for Velvet Price

Key levels remain in focus as VELVET attempts to extend its recovery from recent lows:

Upside levels: $0.767 (23.6% Fibonacci retracement) marks the first breakout barrier, followed by $1.03 and $1.25. A sustained move above these levels could pave the way toward $1.43 and $1.77, bringing the June highs back into view.

Downside levels: Immediate support sits at the 20-day EMA ($0.619), followed by the 50-day EMA ($0.538) and the 100-day EMA ($0.399). A break below these levels could expose the critical Fibonacci base near $0.338.

Resistance ceiling: $0.767 remains the key level bulls must reclaim to confirm that the recent rebound has evolved into a broader recovery trend.

Will Velvet Go Up?

Velvet’s price outlook depends on whether buyers can maintain support above the 20-day EMA while attracting fresh market participation. Improving momentum, a rising Stochastic RSI, and open interest holding above early-year levels suggest speculative interest is gradually returning. Meanwhile, exchange flows remain relatively balanced despite a modest recent inflow, indicating selling pressure has yet to accelerate.

If buyers push the price above $0.767, VELVET could target $1.03 and $1.25 in the near term, with $1.43 becoming achievable if bullish momentum strengthens. 

However, losing $0.619 would likely shift sentiment in favor of sellers, increasing the probability of a pullback toward $0.538 or even $0.399. For now, VELVET remains in a recovery phase, with the next breakout likely determined by sustained buying volume and renewed derivatives participation.