Crypto & Forex August 17, 2026 0 Comments

VELVET Crypto Surges 24%—Is $1.75 the Tipping Point That Could Ignite the Next Big Short Squeeze Explosion?

Velvet [VELVET] just threw down a jaw-dropping 24% surge in the last 24 hours—yep, you read that right, twenty-four percent! Now, before you go thinking it’s just another fleeting pump, consider this: the token’s been cruising above its key Exponential Moving Averages (EMAs), signaling that the bulls might be holding the upper hand for now. But here’s the million-dollar question—can VELVET keep this momentum and shove through the looming resistance at $1.75, or is this just the calm before a bearish storm? What’s got my attention is the Open Interest zooming up by 32% to $23.8 million. That means traders aren’t just watching—they’re doubling down, pouring fresh liquidity into the market. Simultaneously, short positions are getting crushed, with liquidations hitting over $200K, quadruple what longs have faced. That kind of squeeze usually spells trouble for the bears and fresh fuel for the bullish fire. With trading volumes holding steady at month-high levels for days on end, it’s clear that this isn’t some flash in the pan. So, is VELVET’s rally sustainable, or could a slip below those crucial EMAs trigger a sharp correction? Strap in—this ride’s far from over. LEARN MORE

Velvet [VELVET] extended its bullish run with an impressive 24% gain made over the past day, at press time.

Furthermore, with the VELVET tokens above their key EMAs, the bears seem to be on top as they eye the upcoming resistance at $1.75. Is the expected uptrend likely to materialize?

VELVET Open Interest surges

VELVET’s derivative markets have seen a rise in trading volume.

As per the latest data, the Open Interest (OI) on the network rose by 32% to $23.8 million in the last 24 hours, reflecting that traders are increasing their positions with the rising prices of the token.

The fact that the OI on VELVET is rising amid a 24% price gain reflects that fresh money is flowing into the market.

VELVET Open Interests — Source: Coinalyze

Short liquidations hit $202K

That’s not all; the derivatives market is also showing a strong imbalance between bullish and bearish positions. Short liquidations reached $202,400, roughly four times the $59,100 recorded in long liquidations.

The divergence indicates that bearish positions are being squeezed as VELVET continues to move higher, potentially adding further buying pressure to the rally.

VELVET short liquidations — Source: Coinalyze

Trading volume hits monthly highs

Spot market activity is providing another confirmation of the ongoing momentum.

VELVET’s trading activity has stayed at month-high volume for five straight days, demonstrating continued market activity during the current advance. High volume may continue to supply the necessary liquidity for buying to test resistance on higher levels.

VELVET trading volume — Source: Santiment

VELVET trades above key EMAs

The strengthening market activity is reflected clearly on VELVET’s daily chart.

The token is currently trading above all key Exponential Moving Averages (EMAs). Holding above these levels indicates that short- and medium-term momentum remains firmly tilted toward buyers.

A sustained position above the EMAs could keep the current bullish structure intact and increase the probability of a move toward $1.75.

VELVET price analysis — Source: TradingView

Can VELVET reach $1.75?

Various bullish indicators are backing the recent surge in the price of VELVET.

Technically, the token is also trading above its key EMAs. Therefore, $1.75 now stands out as the next major resistance. If buyers maintain control and derivatives activity continues expanding, VELVET could extend its current rally toward the $1.75 level.

On the other hand, a sharp decline below the key EMAs would weaken the bullish setup and expose the token to a deeper correction.