VELO has recently captured the interest of market participants, with some analysts hinting at a notable upward potential for the token.
An evaluation put forth by a cryptocurrency expert named Javon Marks on X (formerly Twitter) suggested that VELO could witness an 81% increase towards $0.028876, underpinned by optimistic market conditions.
However, does the available data align with this positive outlook?
As of the latest update, VELO was valued at $0.01611, marking an 8.94% daily uptick. This uptrend underscored a growing enthusiasm and favorable sentiment surrounding the token.
Furthermore, the token has sustained a robust market capitalization of $119 million alongside substantial trading volumes of $21.69 million over the past 24 hours.
These statistics point to solid market interest, but the question remains: can this translate into enduring growth?
Is Accumulation by Whales Driving VELO’s Upswing?
Whale activity often serves as a catalyst for bullish movements in the cryptocurrency realm. On-chain data has revealed notable whale accumulation in VELO, evident from the total liquidations data.
A balanced combination of $5.6K in short positions and an escalating volume of $1.13K in long positions indicates that whales and major investors hold a positive outlook on VELO’s upward potential.
Additionally, despite recent liquidations, there has been no sharp decline in VELO’s price.
This stability typically signifies that whales are amassing tokens without causing significant price fluctuations, underscoring their confidence in its future growth prospects.
Can Technical Indicators Support a Breakout?
At the time of assessment, the RSI (Relative Strength Index) stood at 28.35, indicating that VELO was situated in the oversold territory. This commonly suggests a diminishing selling pressure, hinting at a possible reversal as buyers prepare to enter the market.
Likewise, based on the Bollinger Bands, VELO was approaching the lower band, positioned at $0.01602, while the upper band stood at $0.01644. This tightening range implies low volatility, with nearing the lower band often signaling a potential price rebound.
Collectively, these indicators suggest that VELO might undergo a rebound shortly, emphasizing the importance of surpassing key resistance levels for a sustained upward thrust.
What Lies Ahead for VELO?
While analysts have projected an 81% surge, the current technical configuration presents a more cautious perspective.
For VELO to realize such a substantial upswing, it must first breach the existing resistance at $0.016 and uphold its momentum.
Market sentiment, whale accumulation, and oversold conditions advocate for a possible short-term escalation, but traders should await confirmation of a breakout before anticipating an 81% rally.