Velvet token jumped over 145% on Saturday morning, breaking into the top 100 coins by market cap and leading the pack with more than $60 million in trading volume. There’s no new headline behind the move. Instead, the Velvet price rally looks like a momentum surge, fueled by leverage and short liquidations rather than any recent product news.
Velvet Crypto’s rally broke out of a quiet period and shot up on its own, while the rest of the market stayed flat and Bitcoin gained only slightly. Moves like this can be the start of something bigger or just a setup for a quick reversal.
Velvet Token Rallies on Volume Alone as Insider Wallets Cash Out
Despite the price explosion, no major announcement has emerged this week to justify the move fundamentally.
Data shows spot trading volume jumped about 720% to $60 million, and derivatives trading reached into the hundreds of millions. Open interest is back near the $150 million peak from mid-June’s last high. Funding rates turned positive, and short sellers got squeezed. Most of the more than $2 million liquidated came from shorts, and the rally is running hot until the momentum fades.
The real story behind the Velvet token price move started weeks ago. Velvet is a DeFAI operating system that uses AI agents for research, trading, and managing portfolios across Solana, Base, and Ethereum, with Hyperliquid for perpetuals.
The main catalyst was a June 3 partnership with Trade.xyz, which offered synthetic pre-IPO exposure to SpaceX, OpenAI, and Anthropic. After this, the token surged from $0.11 to $1.85, a jump of about 1,536%, between June 5 and June 12.
As the Velvet token price rose, on-chain trackers saw project-linked wallets and market maker DWF Labs move tens of millions of tokens to exchanges. Insiders sold to traders chasing the rally, which caused the Velvet coin to drop sharply from $1.85 to a low of $0.30 before the rally picked up again today.
Velvet Price Breaks a Months-Long Base as RSI Hits Overbought
Technically, Velvet token spent weeks in an accumulation phase between $0.30 and $0.50 before breaking out strongly as higher lows and lower volatility built up. This move looks like an ascending base breakout, with resistance at $0.50, $0.80, and $1.00 cleared with little effort.
The rally quickly went parabolic, with Velvet token price jumping from $0.50 to $0.70, then $0.85, and finally $1.35 in a short time.
Momentum indicators are still strongly bullish. The 14-period RSI is at 92, with its signal line near 67, indicating strong upward momentum and no bearish divergence. However, these levels also mean the token is deep in overbought territory. The last time RSI was this high, on June 11/12, a sharp correction followed days later.
Meanwhile, the latest 4-hour candle closed about 4% below its session high, which could be an early sign of profit-taking as traders test resistance above.
Immediate resistance is at $1.40, then $1.60, and the all-time high area between $1.75 and $1.85. If Velvet coin breaks above $1.80, it could enter price discovery and aim for psychological targets at $2.00, $2.20, and maybe even $2.50.
On the downside, initial support is near $1.10, with stronger support at $0.85 and the key breakout zone around $0.50, which is important for keeping the overall bullish trend. If the token drops below this, the next levels to watch are $0.40 and about $0.31, which were previous support levels.
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