Viral Altcoin VELVET Surges 1,700% in a Month: A Path to Further Gains or a Looming Collapse?
Despite a prolonged bear market gripping the cryptocurrency sector, certain tokens are defying the trend with substantial upward momentum. Velvet (VELVET) stands out as a prime example, having experienced quadruple-digit growth over the past month. While some market observers anticipate continued short-term gains, others caution that the altcoin could represent a significant risk.
As of this report, VELVET is trading around $1.58, according to CoinGecko. This represents a 250% increase on a weekly basis and a remarkable 1,700% surge over the last 30 days. Its market capitalization has climbed to nearly $700 million, positioning VELVET as the 90th-largest cryptocurrency by market value.
One factor potentially fueling this price surge is the project’s collaboration with AerodromeeFi. An announcement stated that the integration offers users “tighter pricing,” “less slippage,” access to “deeper liquidity on every trade,” and the ability to “land better fills, automatically.”
Subsequently, the project unveiled Velvet-1, an Artificial Intelligence (AI) model designed for on-chain intelligence, which may have also contributed to the positive price action.
Several analysts have noted the coin’s impressive performance and suggest it may have further room for growth. X user Crypto With Gopal observed that the price “is tightening inside a Symmetrical Triangle after a sharp bullish impulse,” indicating a potential loss of control by sellers and setting a short-term target of $2.1.
The analyst known as The Boss also offered an optimistic outlook, arguing that recent breakout attempts demonstrate sustained buyer activity following consolidation, rather than an immediate reversal of gains. The analyst described the current market structure as “healthier than it did 24 hours ago, with the chart transitioning from recovery mode into expansion mode.” They concluded, “If momentum persists and volume follows through, the market could begin testing higher liquidity zones that were previously rejected during the first impulsive move earlier this month.”
Conversely, a significant number of analysts advise caution, believing investors should steer clear of the altcoin due to the potential for a sharp decline. Yesterday, June 28, X user Crypto with Haris ₿ predicted that VELVET could plummet to $0.90 within the next six hours, labeling the situation a “generational short opportunity.” This prediction did not materialize.
Vuori Trading, meanwhile, characterized the token as another “Binance Alpha aka. CZ scam.” This analyst suggested that while the token appears to be approaching its peak, a move above $2 could trigger an explosive rally to $8.
Adding to the bearish sentiment, the coin’s Relative Strength Index (RSI) has surpassed 80, indicating that VELVET has entered extremely overbought territory. This technical indicator, which ranges from 0 to 100 with readings below 30 typically signaling a buying opportunity, suggests the asset could be poised for a significant correction.
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