- VELVET is up 1,300% from its 2026 low despite sitting 67% below its June 12 all-time high.
- Project-linked wallets and DWF Labs moved nearly 29M tokens to exchanges during the rally.
- A 10.4M token unlock hits July 10, the first of four straight monthly unlocks.
Velvet trades at $0.92 on June 27, up 37.19% in a single day after a violent reversal from $0.67. The move follows a month that took VELVET from pennies to a $1.83 all-time high and back down again.
Is VELVET’s Bounce Sustainable Or A Dead Cat Rally?
The daily chart shows VELVET exploding off a flat base near $0.04 in early June, spiking to $1.83 before collapsing back toward $0.40. Bollinger Bands have widened dramatically, with the upper band now sitting at $1.10 and the basis line at $0.55, reflecting just how violent the recent swings have been. Today’s candle alone ran from a low of $0.67 to a high of $0.96, a 40% intraday range that’s typical for a token this newly volatile.
RSI sits at 66.38, climbing back toward overbought after cooling off from the 90-plus reading hit during the initial spike. That’s a healthier setup than the parabolic move two weeks ago, suggesting today’s rally has more genuine buying behind it rather than pure euphoria. Key levels: support at $0.40 and $0.35, resistance at $0.90-$1.00 and then the all-time high near $1.83.
What Do VELVET Derivatives Show About This Move?
Derivatives volume exploded 876.80% to $376.41M while open interest jumped 139.95% to $85.29M, both signs of a flood of new leveraged money entering the trade. Liquidations over 24 hours hit $681.04M total, with shorts absorbing the bulk of the damage at $601.84M against $79.20M for longs.
That liquidation skew tells the story plainly. Traders shorted VELVET expecting the rally to fade, and got run over instead. The long/short ratio sits just above 1.0, meaning positioning is roughly balanced even after the squeeze, which leaves room for further volatility in either direction.
Why Did VELVET Rally 1,400% In The First Place?
The catalyst was Velvet’s June 3 integration with Trade.xyz, which introduced synthetic pre-IPO perpetual futures letting traders bet on private companies including SpaceX, OpenAI and Anthropic before they go public. SpaceX exposure drew the heaviest demand. A separate, unrelated spike came on June 11 when social media rumors about a K-pop group sharing the Velvet name triggered a 140% single-day surge.
The bigger concern emerged the same week. On-chain trackers flagged roughly 22 million VELVET tokens moved to exchanges by project-linked wallets, plus another 6.68 million transferred by market maker DWF Labs, during the run to all-time highs. That combination, insider wallets selling into retail demand, is the kind of pattern that typically caps a rally’s staying power.
What’s Coming For VELVET In July?
July 10 brings the first of four consecutive monthly token unlocks, releasing roughly 10.4 million VELVET (about 1% of supply, worth $4.2M) tied to early investor vesting schedules. Similar unlocks repeat on August 10, September 10 and October 10, with a much larger pool, 15% of supply for backers and 20% for the team, beginning to vest on a multi-year schedule starting this month. That’s a real, recurring source of sell pressure heading into the back half of the year.
On the bullish side, Velvet has several product releases planned for 2026, including an intent-based trading system called Intent OS, a multi-chain terminal expansion, and deeper integration of its AI copilot. Whether those updates translate to organic demand will likely matter more than the SpaceX narrative, which most analysts view as already played out.
Velvet Price Prediction: July 2026 Weekly Forecast
| Period | Price Range | Outlook |
| July 1-5 | $0.55 – $0.95 | Volatile consolidation as the SpaceX hype fades |
| July 6-12 | $0.45 – $0.85 | Pressure builds into the July 10 unlock |
| July 13-19 | $0.40 – $0.70 | Post-unlock sell pressure tests the $0.40 floor |
| July 20-26 | $0.40 – $0.80 | Stabilization attempt if support holds |
| July 27-31 | $0.45 – $0.90 | Range-bound trade pending roadmap progress |
Velvet Price Prediction: Upside and Downside Targets for July
- Upside case: Platform utility catches up with the hype, VELVET clears $1.00 and pushes toward a retest of $1.50.
- Downside case: Unlock-driven selling overwhelms demand, VELVET breaks $0.40, and price slides toward $0.35 or lower.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
