VELO Surges 26% After Multi-Year Downtrend, Eyes $0.02 Target

• VELO rebounds sharply, but still trades below key long-term trend resistance levels
• Support near $0.004 holds firm, shaping a base for potential upside continuation
• Weak inflows and low open interest signal cautious, not fully confirmed demand

Velo (VELO) trades near $0.0048 after a sharp 26% daily gain, drawing renewed attention from market participants. The recent move follows months of muted activity and signals a possible shift in short-term sentiment. 

However, the broader structure still reflects a long recovery from a steep multi-year decline. Traders now focus on whether the token can hold current levels and build sustained upside momentum.

Market Structure Shows Early Recovery Signs

VELO’s long-term chart still reflects a heavy drawdown from its 2021 peak above $2. The price collapsed into a prolonged bottoming phase that lasted through 2023. 

Since then, the structure has started to stabilize, forming higher lows on the weekly timeframe. Consequently, this pattern suggests that sellers continue to lose control gradually.

Short-term momentum has improved alongside rising trading volume. Additionally, flattening short-term moving averages point to a transition phase. Despite this shift, the price still trades below major long-term averages, which keeps the macro trend under pressure. Hence, the current setup reflects early accumulation rather than a confirmed uptrend.

Key Levels Define the Next Move

The immediate support zone sits between $0.0036 and $0.0040, where buyers have stepped in repeatedly. This area now acts as a key base for any bullish continuation. If the price holds above this region, buyers may attempt a push toward the next resistance cluster.

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The first major resistance stands between $0.014 and $0.02. A breakout above this range would confirm stronger bullish intent. Moreover, such a move could open the path toward $0.03 and $0.06 in the medium term. On the downside, a breakdown below $0.0035 could trigger a retest of $0.0025 or lower levels.

Derivatives and Flows Signal Cautious Participation

Open interest data shows declining participation after early-year peaks, reflecting reduced speculative activity. However, recent stabilization suggests that traders have started to re-enter positions cautiously. Besides, this behavior aligns with the gradual price recovery seen in recent weeks.

Spot flow data supports this cautious outlook. Outflows dominated earlier periods, signaling persistent selling pressure. Recently, inflows have improved slightly, although they remain limited. Consequently, demand has not fully returned, which keeps bullish conviction in check.

Technical Outlook for Velo Price

Key levels for Velo remain clearly structured as the asset consolidates near its accumulation base. Price currently holds above the $0.0036–$0.0040 support zone, which continues to act as a strong foundation. 

Upside levels: Immediate resistance stands at $0.014, followed by the $0.02 zone, which marks a major breakout level. A successful move above this range could open the door toward $0.03 and $0.055. Additionally, extended bullish momentum may push price toward the $0.06 region, where higher timeframe resistance becomes relevant.

Downside levels: Initial support remains at $0.0035, which aligns closely with the current base. A breakdown below this level could trigger a move toward $0.0025. Moreover, failure to hold that range may expose Velo to its macro bottom near $0.001–$0.0015.

Resistance ceiling: The $0.014–$0.02 region also aligns with key moving averages, making it the most critical level to flip for a sustained bullish shift. Until price clears this zone, the broader trend remains cautious.

The technical structure suggests Velo is compressing within a long-term accumulation range. Consequently, this tightening price action often precedes a larger directional move. Volume has started to increase, which supports the possibility of an upcoming breakout attempt.

Will Velo Go Up?

Velo’s short-term direction depends on whether buyers can maintain control above the $0.0035 support zone. Holding this level would allow price to build momentum toward the $0.014 resistance cluster. Moreover, improving volume and stabilizing open interest could support a gradual recovery phase.

However, the market still lacks strong conviction from sustained inflows. This hesitation suggests that any rally may face resistance unless participation increases. If bullish momentum strengthens, Velo could target $0.02 and extend gains toward $0.03 and beyond.

On the downside, losing $0.0035 would weaken the current structure and likely trigger renewed selling pressure. This scenario could push price back toward lower accumulation zones.

For now, Velo remains at a pivotal point. The market shows early recovery signals, yet confirmation depends on a decisive breakout above resistance.