Key Takeaways:
VELVET has recovered 250% from its June low of $0.31, erasing more than half of an 83% collapse that followed the token's all-time high earlier this month.
VELVET rose 37.19% to $0.92 on June 27, extending a violent reversal from a low of roughly $0.31 reached after the token crashed from its June 11 peak of $1.85, CoinGecko data shows. The move came as traders who had bet against the token were forced to cover, with $601.84 million in short liquidations against $79.20 million in longs over 24 hours across major exchanges, per Coinglass.
"The liquidation skew tells the story plainly — shorts expected the rally to fade and got run over instead," Alex Kuptsikevich, chief market analyst at FxPro, said. "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."
Derivatives volume surged 876.80% to $376.41 million while open interest jumped 139.95% to $85.29 million, Coinglass data shows. The relative strength index sits at 66.38, climbing back from the 90-plus reading hit during the initial spike, suggesting the current rally has more genuine buying behind it rather than pure euphoria. Bollinger Bands have widened dramatically, with the upper band at $1.10 and the basis line at $0.55, reflecting the violence of recent swings.
The token's June 3 integration with Trade.xyz, which introduced synthetic pre-IPO perpetual futures for SpaceX, OpenAI and Anthropic, triggered the initial surge from $0.04 to $1.83. SpaceX exposure drew the heaviest demand. A separate 140% single-day spike on June 11 followed social media rumors about a K-pop group sharing the Velvet name.
Insider Token Moves Raise Questions About Rally's Staying Power
On-chain trackers flagged roughly 22 million VELVET tokens moved to exchanges by project-linked wallets during the run to all-time highs, plus another 6.68 million transferred by market maker DWF Labs, Arkham Intelligence data shows. That pattern — insider wallets selling into retail demand — typically caps a rally's staying power.
July 10 brings the first of four consecutive monthly token unlocks, releasing roughly 10.4 million VELVET, about 1% of circulating supply worth $4.2 million at current prices, 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.
Key support sits at $0.40 and $0.35, while resistance lies at $0.90 to $1.00 and then the all-time high near $1.83. 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.
This article is for informational purposes only and does not constitute investment advice.
