VELO Consolidates Above $0.016 Support, 12.5% Rally Possible on Breakout

VELO has demonstrated resilience in recent trading sessions as the token consolidates above critical support at $0.016, signaling potential for a bullish breakout. After dipping to a 24-hour low of $0.0155, the asset rebounded, maintaining a daily range between $0.0155 and $0.0166. This consolidation phase follows a 0.91% decline in the last 24 hours, with the price stabilizing at $0.01635 as buyers step in to absorb selling pressure near the $0.0155 support zone [1]. The recent activity suggests a shift in market dynamics, with the token transitioning from a long-term downtrend into a defined range between $0.015 and $0.016 [1]. A breakout above this consolidation range has already occurred, hinting at a possible reversal in the broader trend [1].

Technical indicators reinforce this cautious optimism. The Relative Strength Index (RSI) stands at 51.30, indicating a neutral stance with no overbought or oversold conditions, while the Moving Average Convergence Divergence (MACD) remains near zero, reflecting subdued volatility [1]. These signals suggest the market is neither aggressively bullish nor bearish, with traders awaiting a clear directional bias. Immediate resistance lies between $0.0166 and $0.0170, and a successful breach could target levels between $0.018 and $0.020 [1].

Market metrics underscore the token’s current positioning. Trading volume reached $38.4 million in the last 24 hours, albeit a 11% decline, while the total market capitalization remains at $120.87 million [1]. The fully diluted valuation stands at $392.16 million, with 7.39 billion VELO tokens in circulation—accounting for 30.8% of the 24-billion maximum supply [1]. Community sentiment remains overwhelmingly positive, with 91% of respondents expressing bullishness, a figure that highlights confidence in the token’s ability to maintain its position above $0.016 [1]. However, analysts caution that a breakdown below the $0.0155 support could reignite selling pressure and negate the recent consolidation [1].

The structural shift in VELO’s price action—from a prolonged downtrend to a defined range—indicates a potential inflection point for the asset. If the $0.016 support holds, it could serve as a foundation for further upside, particularly if the token manages to sustain a breakout above $0.0166 [1]. Traders and investors are closely monitoring volume and sentiment metrics, as a sustained rally toward $0.018 would represent a significant milestone for the token.

Source: [1] [VELO Price Shows Strength with Consolidation Above $0.016 Support] [https://coinmarketcap.com/community/articles/6887155d092f266c0faa6020/]