Velvet Crashes 33% as Volume-Spike Selling Dominates

Summary

• VELVETUSDT crashed from $0.075 to $0.050 with extreme volume spikes indicating heavy selling pressure.
• Market structure shows a clear downtrend with lower lows and failed bullish rejections.
• Support at $0.054 failed to hold, suggesting continued downside risk toward $0.050.
• Volume anomalies drove significant price drops, highlighting institutional or large holder liquidation.
• Caution is advised as bears dominate; recovery requires sustained volume above $0.056.

Severe Liquidation Crash

Velvet/Tether (VELVETUSDT) closed the 1-hour at $0.05042 after a sharp decline, with 24-hour trading volume reaching approximately 15.4 million USDT. The asset experienced a severe correction, losing over 33% in three days.

1-Hour Support/Resistance and Candlestick Patterns

Price action has established a clear lower low structure, with the recent close near $0.050 acting as a critical test of immediate support. The level at $0.054 served as resistance during the earlier hours of September 10, where multiple candles closed below this threshold after failing to sustain upward momentum. A significant rejection occurred at $0.058, where a bearish engulfing pattern formed at 03:00, covering the prior candle's body completely and signaling strong seller control. Another rejection is visible at $0.056, where a candle with a long upper shadow indicates that buyers attempted to push prices higher but were swiftly rejected, leaving a wick that was more than twice the length of the body. The price is currently closer to the immediate support zone around $0.050, having broken below the $0.054 level. The sequence of bearish engulfing patterns and long upper shadows suggests that every attempt to rally is being met with aggressive selling pressure, reinforcing the bearish bias.

Volume and Turnover vs. Historical Comparison

The 24-hour total volume is significantly elevated compared to historical averages. The 7-day average single-hour volume is approximately 445,277 USDT, while the 15-day average daily volume is roughly 8.8 million USDT. The 24-hour total volume of approximately 15.4 million USDT is well above the 15-day daily average, indicating an anomaly in trading activity. Specific hours with volume exceeding twice the 7-day average single-hour volume include the crash hour at 18:00 on September 9, which recorded over 5.7 million USDT, and the final hour at 12:00 on September 10, which saw 1.27 million USDT. Following the massive volume spike at 18:00 on September 9, the price dropped sharply from $0.073 to $0.059 within the next 3-6 hours, demonstrating that the volume effectively drove the price down. In contrast, the volume spike at 12:00 on September 10 did not result in a follow-through rally; instead, the price closed lower at $0.050, suggesting that the buying interest was insufficient to sustain higher levels. These volume anomalies appear to have driven the price effectively downward, with high volume accompanying red candles confirming strong distribution.

Look Back: Current Market Phase

The market phase is clearly identified as a downtrend. Over the past 7-15 days, the price has formed a series of lower highs and lower lows, with a 3-day price change of -33.66% and a 7-day price change of -35.10%. This consistent downward structure rules out sideways or uptrend conditions. The magnitude of the prior move exceeds 15%, but the current price action shows no signs of mean reversion or reversal; instead, it continues to make new lows. The absence of higher highs confirms that the downtrend is intact. Therefore, the market is in a sustained downtrend phase, characterized by persistent selling pressure and a lack of buyer intervention.

The next 24 hours may see further downside pressure if the $0.050 support level breaks, potentially exposing lower supports around $0.045. Upside risk is limited unless price can reclaim and hold above $0.056, which would suggest a potential short-term correction within the broader downtrend.