VELO shows bullish breakout potential, supported by technical indicators and strong on-chain metrics.

  • VELO could see an 81% surge, supported by strong market sentiment and whale accumulation.

  • The oversold RSI and narrowing Bollinger Bands suggest a possible breakout in VELO price.

Velo [VELO] has recently attracted market attention, with some analysts believing that the coin could see significant upward momentum.

Driven by bullish market conditions, VELO could surge by 81% to $0.028876.

But do the data support this optimistic outlook?

At press time, VELO is trading at $0.01611, with a daily gain of 8.94%. This reflects the rising interest and positive sentiment towards the token.

Additionally, the token’s market cap has remained healthy at $119 million, with strong trading volume of $21.69 million in the past 24 hours.

These figures suggest strong market interest, but does this mean sustainable growth?

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Is Whale Hoarding Driving VELO’s Growth?

Whale activity has been a key driver of many bullish moves in the cryptocurrency market. On-chain data shows that VELO has seen a large accumulation of whales, which is evident in the Total Liquidations chart.

With short positions at $56,000 and long positions increasing by $11.3K, this balanced combination shows that whales and large investors are confident in VELO’s upside potential.

Additionally, despite the recent liquidations, VELO’s price has not dropped significantly.

This stability often suggests that whales are accumulating tokens without causing price shocks, indicating confidence in their future growth potential.

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Can technical indicators support a breakout?

At press time, the RSI (Relative Strength Index) was 28.35, indicating that VELO is in oversold territory. This typically suggests that selling pressure is waning and a reversal could be imminent as buyers begin to step in.

Likewise, according to the Bollinger Bands indicator, VELO is close to the lower band at $0.01602, while the upper band is $0.01644, at press time. This tightening indicates low volatility, and approaching the lower band usually signals a potential price rebound.

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Together, these indicators suggest that VELO could see a rebound soon, but a breakout above key resistance levels will be crucial for continued upward momentum.

What are the possible outcomes?

Despite the expected gains of 81%, the actual technical setup presents a more cautious outlook.

For VELO to achieve such a significant move, it must first break above the current resistance level of $0.016 and maintain momentum.

Market sentiment, whale accumulation, and oversold conditions support a potential short-term uptick, but traders should watch for confirmation of a breakout before anticipating an 81% rally.