Recent market activity has propelled Velo [VELO] into the spotlight, with a notable surge of 10.35% in the past 24 hours. As the altcoin edges closer to its critical barrier at $0.019, the primary concern lies in whether it can sustain its current uptrend to breach this level or if a retracement is imminent.
Currently trading at $0.01417, Velo is attracting increased interest from traders, as evidenced by a 39.44% spike in trading volume to $10.48 million within a day. This surge in volume, coupled with a market capitalization rise to $104.74 million, suggests a prevalent bullish sentiment towards VELO.
Interpreting RSI and Bollinger Bands Signals
Examining the technical indicators, Velo’s Relative Strength Index (RSI) sits at 45.9, indicating room for further price appreciation before hitting overbought levels. This suggests that the market still has potential for upward movement, signaling a favorable outlook for more gains.
Moreover, the Bollinger Bands (BB) depict a trading range of $0.01188 to $0.01942, with the cryptocurrency’s price testing the upper band. This scenario implies a likely breakout, especially if market momentum persists.
Exploring VELO’s Liquidation Landscape
Analysis of liquidation data reveals a dominance of long positions over short positions. Over the past 24 hours, $4.75k worth of long positions were liquidated compared to $11.16k for shorts, indicating a cautious approach among traders. Nevertheless, the substantial number of long positions underscores a prevailing confidence in the altcoin’s potential.
For VELO to surpass the $0.019 resistance, this confidence must translate into sustained buying pressure.
Assessing the Long/Short Ratio for VELO
Interestingly, the long/short ratio exposes a higher percentage of traders taking short positions on VELO – 59.34% compared to 40.66% in long positions. This prevalence of short positions may suggest lingering doubts regarding the token’s ability to uphold its recent gains.
If VELO continues its upward trajectory, it could trigger a short squeeze, compelling short sellers to close their positions and potentially driving the price even higher.
With increasing trading volumes, a balanced RSI, and positive liquidation data supporting long positions, VELO appears poised for a bullish breakout. A successful breach of the $0.019 resistance could pave the way for further price appreciation.
Nevertheless, the skepticism from short traders could present a temporary obstacle. All attention remains fixated on VELO as it approaches this critical juncture.