- Velo’s price surge is driving high trading volumes, with RSI and Bollinger Bands signaling room for growth
- Liquidation data revealed strong long positions, but skepticism remains with a high short ratio
As a seasoned analyst with over two decades of experience in the financial markets under my belt, I’ve seen my fair share of bull and bear runs, green days, and red ones too. Looking at Velo [VELO], I must admit that its recent 10.35% surge has piqued my interest.
Velo (VELO) has been drawing significant interest in the cryptocurrency sector due to a notable 10.35% price jump over the past day. As the altcoin edges closer to its crucial resistance point at $0.019, the pressing issue is whether it will sustain this positive trajectory and break through or encounter a reversal.
Currently, Velo is being traded at $0.01417, indicating a rising curiosity among market players. The trading volume has significantly increased by 39.44% over the past day, reaching $10.48 million – a clear indication of increased activity.
As someone who has been actively trading for several years now, I can tell you that a sudden increase in volume, along with a significant market capitalization rise to $104.74 million, is often indicative of bullish sentiment among traders. In my experience, this kind of trend usually means that investors are optimistic about the future performance of VELO, and they are willing to invest more in the hopes of seeing their investment grow even further. This is a common occurrence in the fast-paced world of trading, where market fluctuations can change rapidly and it’s important to stay attuned to trends in order to make informed decisions.
RSI and Bollinger Bands – What are they indicating?
In simpler terms, the technical analysis shows that VELO‘s Relative Strength Index (RSI) is currently 45.9, suggesting there’s still potential for the token to increase in value before it becomes too highly valued, or overbought. This means the market isn’t yet showing signs of excessive growth, which could lead to more positive developments.
In my analysis, the Bollinger Bands (BB) indicated a price range of $0.01188 to $0.01942 for the crypto in question. Notably, the price approached the upper band, suggesting a potential breakout might be on the horizon. This is particularly plausible if the market’s momentum maintains its current trajectory.
VELO liquidation data – Are traders betting on a bullish move?
Examining the market liquidation figures, it appears that more traders held long positions than short ones. Over the last day, approximately $4,750 worth of long positions were liquidated versus around $11,160 in short positions, suggesting a generally cautious stance among traders. Yet, the conviction in the altcoin’s future potential remains robust, as evidenced by the substantial number of long positions maintained in the market.
Nevertheless, maintaining a consistent purchase momentum is crucial if the token is to overcome the $0.019 barrier as resistance.
VELO long/short ratio – Skepticism or short squeeze setup?
It’s worth noting that a significant majority (59.34%) of traders are betting against VELO, by taking short positions, compared to those who are holding long positions (40.66%). This heavy emphasis on shorting suggests that some traders may be uncertain about the token maintaining its recent growth trajectory.
If the cryptocurrency I’m invested in keeps climbing, it might trigger a short squeeze. This situation would compel those who have been betting against it (shorting) to buy back to close their positions, potentially pushing the price even further upwards.
Read Velo’s [VELO] Price Prediction 2024–2025
It appears that VELO is primed for an upward trend, as indicated by increasing trade activity, a neutral RSI (Relative Strength Index), and robust liquidation data suggesting favorable long positions. If the token successfully breaches its current resistance at $0.019, it might continue to surge.
Nevertheless, doubts from short sellers could potentially create a momentary obstacle. Everyone is watching VELO closely as it approaches this significant price point.
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2024-10-11 09:11