Velodrome Finance’s VELO Token Surges 105% on Platform Volume Jump

Velodrome Finance’s token, VELO, has seen a significant surge this week, reaching $0.01740 on Wednesday, July 16. This price point is the highest since March 3 and represents a 105% increase from its lowest point this year. The rally is accompanied by a notable jump in volume on its platform, which has handled over $597 million so far in July, up from $1.1 billion in June. If this trend continues, July’s volume could surpass June’s, indicating strong momentum for the token.

The increase in VELO’s price can be attributed to several factors. Third-party data reveals a rising volume on its decentralized exchange this month, contributing to the token’s climb. Additionally, the launch of Optimism’s SuperStacks rewards program has incentivized users across its decentralized finance ecosystem. Over $200 million was contributed during the program, with more than 50,000 users participating. A total of 20,545 Velodrome users have begun claiming their rewards, further boosting the token’s value.

Velodrome’s developers have also introduced Superswaps, a platform that allows users to swap assets across multiple chains within a single interface. This innovation has further supported the rally, providing users with more flexibility and convenience in their transactions.

However, VELO faces potential risks. The share of tokens held by whales has dropped 65% over the past 30 days, while smart money holdings are down to 4,915. Meanwhile, the supply of VELO on exchanges has climbed to 344.6 million. These factors could impact the token’s price in the future as market dynamics shift.

Technical analysis of VELO’s price chart shows that the token has bounced back this month, climbing from a low of $0.01160 to its highest level since March. VELO broke above a key resistance level at $0.01575, its May 10 high and the neckline of a double-bottom pattern. It also moved above the 50-day and 100-day Exponential Moving Averages, signaling bullish momentum. VELO’s Average Directional Index has climbed to 20 and is trending upward, indicating sustained momentum. The Relative Strength Index is approaching the overbought threshold at 70.

Given this setup, VELO is likely to continue rising as bulls target the 50% Fibonacci retracement level at $0.02372, approximately 36% above current levels. However, a drop below the $0.015 support would invalidate the bullish outlook. The broader crypto market rally, which has lifted most digital assets, is also expected to support VELO’s volume and price in the coming weeks. Historically, both centralized and decentralized exchange volumes tend to rise during bull markets, which could further boost VELO’s performance.