VELVET surged 54% to a six-week high of $1.12 before pulling back, while the price is currently around $1.07—up 16% today and 119% over the week. The rally began after VELVET broke out of a prolonged consolidation range and turned the $1 milestone into a support zone. Trading volume and activity in the derivatives market have both increased sharply. Derivatives momentum drives VELVET’s rally VELVET’s uptrend is supported by growing speculative inflows into the derivatives market, reflected in rising trading volume and open interest. VELVET’s price previously rose 54% to $1.12 and then dropped sharply. Trading volume jumped 392% to $71 million, indicating significantly higher market activity. Index | Change or Value | VELVET Price | Around $1.07 Daily increase | 16% Weekly increase | 119% Trading volume | Up 392%, to $71 million Derivatives volume | Up 390%, to $432 million Open interest | Up 69%, to $63 million Source: CoinGlass Derivatives volume rose 390% to $432 million, while open interest increased 69% to $63 million and reached a one-month high. This suggests many new positions were opened as the price moved higher. In perpetual futures markets, buy volume was $19.25 million, higher than sell volume at $18.53 million. Perps Delta increased to $0.72 million during the day, reflecting proactive buying activity by derivatives traders. Source: Coinalyze VELVET’s Long/Short ratio also rose above 1, with the ratio for the top trader group on Binance reaching 1.3. A reading above 1 indicates that most of this group is leaning toward the likelihood that the price will continue to rise. Exchange inflows increase profit-taking risk Profit-taking pressure from VELVET holders could act as a headwind to the rally, especially since the amount of tokens transferred to exchanges had reached a one-month high. On August 14, VELVET Spot Netflow hit $725,000 before falling to $38,000 at the time of the recorded value. Positive Spot Netflow indicates more VELVET moved into exchanges than was withdrawn. Source: CoinGlass Token transfers to exchanges often reflect increased supply available for selling on the spot market. If this pressure persists, VELVET’s upward momentum could weaken and lead to a correction. VELVET needs to hold the $1 level to maintain the uptrend structure VELVET currently has strong upward momentum, but the RSI is at 80, indicating the token is in an overbought zone and could face heightened volatility. Source: TradingView An RSI of 80 reflects strong presence from the buying side, but it also shows the price is in an overbought state. Fresh demand will need to continue in order to support the current rally. If buying pressure remains solid, VELVET could defend the $1 level and target $1.60, a zone that previously marked weakness in the prior trend. Conversely, falling demand alongside immediate selling pressure could push the price below $1. Summary VELVET surged after breaking out of its consolidation range, supported by speculative activity in the derivatives market. However, positive Spot Netflow and an overbought RSI suggest the rally may face profit-taking pressure if demand weakens. Source: https://tintucbitcoin.com/velvet-co-the-giu-moc-1-usd-sau-khi-tang-54/