VELVET Price Holds Strong Amid Deleveraging Risk

VELVET has seen significant price action in recent days, posting a gain of roughly 10% over the past 24 hours. This uptrend is part of a broader bullish trend across the market.

One factor contributing to VELVET's surge is the deleveraging risk that has been weighing on the asset. A net sales flush of $25.38 million over the past 30 days has driven out over-leveraged positions, resulting in an 18% loss for VELVET.

However, a positive sign is that the Funding Rate remains positive, indicating that traders still hold a bullish outlook for VELVET's long-term rally. Past performance backs this view, with VELVET posting a year-to-date gain of roughly 200%.

A growing accumulation trend runs through the Spot market as well, with netflow measures showing that inflow is being dominated by outflow. Over the past 24 hours, $182,000 worth of VELVET was moved into private wallets, likely for long-term holding.