I just looked over the order book around $VELVET —this 0.6164 USDT level is quite interesting. In the past 24 hours it’s down 40%; the high and low have been crushed from 1.08 to 0.58, and the amplitude is close to doubling. Volume is 92.1M, suggesting the panic selling is still continuing to get dumped out, but liquidity hasn’t dried up yet—which is both good and bad.
The key signal: during the sell-off, near 0.58 a large buy wall was consumed, and then it was quickly refilled. Such “defense” style limit orders usually aren’t retail behavior. It could be that larger funds are picking up in batches, or that early holders are using their cost basis to anchor a psychological bottom. If it’s the former, then this sharp plunge is very likely a shakeout—especially after the chain liquidation caused by contract blowups. After all, an 84% drop is enough to sweep both longs and shorts.
My view is that there may be one more dip in the short term, but the 0.55–0.56 zone will form strong support. If you’re holding spot, there’s no need to cut now; if you want to bottom-fish, wait for a breakdown below 0.60 and only act once volume shrinks to below 50M. This coin’s volatility is too high—chasing a sell-off can easily get you hit by a second knife.
The key signal: during the sell-off, near 0.58 a large buy wall was consumed, and then it was quickly refilled. Such “defense” style limit orders usually aren’t retail behavior. It could be that larger funds are picking up in batches, or that early holders are using their cost basis to anchor a psychological bottom. If it’s the former, then this sharp plunge is very likely a shakeout—especially after the chain liquidation caused by contract blowups. After all, an 84% drop is enough to sweep both longs and shorts.
My view is that there may be one more dip in the short term, but the 0.55–0.56 zone will form strong support. If you’re holding spot, there’s no need to cut now; if you want to bottom-fish, wait for a breakdown below 0.60 and only act once volume shrinks to below 50M. This coin’s volatility is too high—chasing a sell-off can easily get you hit by a second knife.