Velvet Price Surges 20.87 Points Amid Short Squeeze and Narrative Attention
The price of Velvet (VELVET) surged 20.87 points in just six hours, driven by aggressive derivatives positioning and a short-squeeze style liquidation spike.
A derivatives-focused account noted that 'something is happening on $VELVET,' with 24-hour liquidations of roughly $863.9k in shorts versus $651.4k in longs, where 57% of all liquidations were shorts.
The move was also fueled by momentum trading and recent narrative attention. Multiple analysts pointed out that VELVET had been quietly accumulating interest before breaking out, priming it for a leveraged spike once traders noticed.
A staking-heavy rewards update from Velvet, shifting 12% of rewards to be paid as liquid VELVET while 88% are staked for 12 months, is also supporting the bullish tone and willingness to trade VELVET aggressively.