VELVET's Post-Breakout Momentum: A Strategic Case for Targeting $0.07147 Resistance

VELVET’s recent price action has ignited renewed interest among traders, with the token confirming a breakout above critical support at $0.06291 and surging 5.1% to $0.06639 in a single trading session [1]. This upward momentum, coupled with favorable technical indicators and bullish market sentiment, positions the $0.07147 resistance level as a pivotal target for short-term traders seeking to capitalize on range-bound breakout potential.

Technical Strength and Breakout Validation

The breakout from the $0.06291 support level is a textbook example of a low-risk, high-reward setup. According to a report by XT Community News, VELVET has maintained stability above this level despite heightened volatility, signaling growing buyer confidence [1]. Concurrently, volume trends reveal a 1.80% 24-hour increase and a 4.93% 7-day increase, suggesting accumulation by institutional or algorithmic traders [3].

Technical analysis from Traders Union and Bitget further reinforces this narrative. Both platforms issue “Buy” and “Strong Buy” recommendations for the D1 and W1 timeframes, citing a confluence of bullish signals from 18 out of 27 technical indicators [1][3]. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have crossed into overbought territory, but this divergence is often seen as a precursor to sustained upward momentum in range-bound assets [2].

Strategic Case for $0.07147

The $0.07147 level represents a critical psychological and technical threshold. Historically, this price point has acted as a dynamic resistance, with prior attempts to breach it resulting in sharp corrections. However, VELVET’s current trajectory—supported by a 5.1% weekly gain—suggests a potential shift in market dynamics. A successful breakout above $0.07147 would validate the token’s transition from a range-bound asset to a trend-following one, unlocking further upside toward $0.08–$0.09 [2].

Volume confirmation remains the key variable. While no specific candlestick patterns (e.g., bullish engulfing or piercing lines) have been documented at this level, the absence of bearish rejection candles during recent tests implies weakening resistance [1]. Traders should monitor for a “volume spike on breakout,” a classic sign of institutional participation and reduced short-term selling pressure.

Risk Management and Market Sentiment

Despite the bullish case, prudence is warranted. The broader market’s mixed sentiment—reflected in 9 bearish indicators—means external macroeconomic factors (e.g., Fed policy updates or sector-wide corrections) could disrupt VELVET’s trajectory [2]. A breakdown below $0.06291 would invalidate the breakout thesis, triggering a retest of $0.058–$0.060 as the new support range.

For those entering long positions, placing stop-loss orders just below $0.06291 is advisable. Conversely, short-term traders may consider scaling into positions as VELVET approaches $0.07147, using the 20-day moving average ($0.068) as a dynamic support reference [3].

Conclusion

VELVET’s post-breakout momentum presents a compelling case for targeting $0.07147, driven by technical strength, volume trends, and favorable market sentiment. While the path to this level is not without risk, the confluence of bullish signals—from Traders Union’s D1/W1 recommendations to Bitget’s “Strong Buy” rating—suggests a high probability of success for traders willing to act decisively [1][3]. As always, vigilance in monitoring volume and candlestick behavior near resistance will be critical to navigating this volatile market phase.

Source:
[1] XT Community News, [https://www.xt.com/en/blog/community-news/2025-09-04T03:00:00.000Z]
[2] Velvet Price Prediction up to $0.130851 by 2025, [https://coindataflow.com/en/prediction/velvet]
[3] Velvet price USD live chart (VELVET/USD), [https://www.bitget.com/price/velvet]