Velvet shows obvious short-selling signals, and the multi-timeframe technical indicators are weakening, which warrants caution.

From a technical perspective, the 4-hour and 1-hour charts are both weakening—MACD has already crossed bearish, and moving averages are arranged in a bearish pattern. In the past hour alone, it has fallen another 2.5%. More importantly, the RSI indicator has dropped to 18, entering a deep oversold area. This multi-timeframe resonance of weakness often indicates short-term downside pressure.

Regarding market data: the asks and bids are roughly balanced, but bullish sentiment still exists. The funding rate is slightly positive, suggesting that funds are still going long. However, large holders’ holdings data show a bias toward the short side, and active volume is extremely low. Under this contradictory situation, the market could experience a rapid fall at any time.

Trade considerations: currently, there is a divergence between technical and sentiment indicators. The RSI is oversold, but the price inertia has not yet ended. In this environment, shorting might have about 1.2% short-term space. However, oversold rebounds can occur at any moment, so strict position and stop-loss control are essential.

Market volatility is increasing. Whether going long or short, caution must be exercised, and emotions should not dominate trading decisions.