#MyGateTradeStory

#VELVET (BSC chain) is trading at approximately $1.60, with the 24-hour trading volume showing significant activity. The buy volume over the past 24 hours reached roughly $2.78M, while sell volume came in at about $2.59M, indicating a slight net buying bias. Across all measured timeframes (1m, 5m, 15m, 30m, 1h, 4h, 6h, 24h), buy and sell volumes are closely balanced, which suggests that the current price level is a contested zone where both bulls and bears are actively engaged.
Key Resistance Levels to Monitor:
The immediate resistance zone sits at approximately $1.75, which represents the upper boundary of the recent 24-hour trading range mentioned in the earlier market overview. This level has acted as a ceiling where selling pressure intensified. A secondary resistance to watch is near $1.80 to $1.85, which would mark a psychological threshold and an extension of the overbought momentum wave. If VELVET can sustain volume above $1.75 and break through with conviction, the next meaningful resistance likely emerges around the $2.00 mark, a round-number psychological level that often attracts increased seller interest in meme-type tokens experiencing rapid rallies.
Key Support Levels to Monitor:
On the downside, the first support level sits around $1.40 to $1.45. This zone aligns with the mid-range of recent consolidation and has seen buying interest step in during intraday pullbacks. Below that, the $1.20 to $1.25 area serves as a more structural support, likely corresponding to where the earlier breakout momentum began before the parabolic push. A deeper support zone exists around $0.90 to $1.00, which would represent a significant retracement from current levels and align with the Classic Pivot Point calculation where S1 sits near $0.74 and the main pivot (PP) around $0.92, per available technical frameworks.
Current Technical Position:
VELVET remains in an extreme overbought state based on the earlier analysis showing daily RSI at 98.8 and 4-hour RSI at 83.9. The CCI and Williams %R indicators also confirm overbought conditions. While the moving average alignment (MA7 above MA30 above MA120) signals persistent bullish momentum across timeframes, the SAR indicator has already flashed bearish warnings. This combination typically precedes some form of price correction, whether a shallow pullback to the first support zone or a deeper retracement if selling volume accelerates.
Given the 24-hour buy/sell volume ratio is nearly 1.07:1 (buys slightly ahead), the market is not yet showing a decisive shift to selling dominance. However, the overbought readings and the known project-related token transfers (28.68M moved to exchanges) mean that downside risk is elevated. A breakdown below $1.40 with increasing sell volume would likely accelerate toward the $1.20 support, and failure there could revisit the $1.00 zone.
Conversely, if VELVET holds above $1.60 and pushes through $1.75 with sustained volume (24h volume remaining above $5M combined), the bullish structure remains intact, and the $2.00 level becomes the next target. Traders should watch the 4-hour and 6-hour volume trends closely: the 4h buy/sell ratio is near 1.02:1, and the 6h ratio is approximately 1.03:1. If these ratios flip to sell-dominant, it would be an early signal that the rally is losing steam.
Practical Monitoring Points:
Resistance: $1.75 (immediate), $1.85 (secondary), $2.00 (psychological)
Support: $1.40 to $1.45 (first), $1.20 to $1.25 (structural), $0.90 to $1.00 (deep)
Volume trigger: Watch for 4h sell volume exceeding buy volume by more than 15%, which would signal a momentum shift
On-chain alert: Continued large token transfers from project addresses to exchanges would add downward pressure
@Gate_Square #MyGateTradeStory