The data looks suspicious. $VELVET Today’s trading volume reached 367 million USD, but the price soared to a high of 0.6099 before crashing back to 0.4665, which is a 23% increase but with nearly 60 million USD in selling pressure. The turnover rate is ridiculously high, with 24-hour trading volume almost three times the market cap.

Three possible implications:
First, this is a typical “bloodied chips fleeing” signal. The high point of 0.6099 just hits a previous dense trapped area, and the main players are choosing to make a large amount of turnover at this level, indicating someone is actively distributing, retail investors are eager to buy in but the price can’t hold the high ground. This isn’t healthy growth; it’s accelerated dumping.
Second, it could be a strategic rebalancing by the exchange or market makers. The fluctuation between 0.3732 and 0.6099 is nearly 63%. If the project team is actively market-making to attract liquidity, the next step might be to continue dumping to wash out the market down below 0.4 to collect more chips, or directly push through 0.61 to open new space. But a 367 million USD trading volume isn’t something small funds can sustain.
Third, it’s also possible that a big influencer or news shoutout caused short-term emotional hype. Data shows buying was concentrated during Asian hours, and the current price has fallen more than 23%. If no new funds come in tomorrow, the 0.4665 level is likely just halfway up the mountain, with the next support around 0.4.
Operational suggestion: chasing longs now has extremely low cost-effectiveness. Set stop-loss at 0.45, take profit at 0.55, and keep position size within 5% of total funds. If it falls below 0.45, don’t hold on; after such massive turnover, if it doesn’t quickly recover, it’s often accompanied by a 30% or more retracement. Wait until the price dips to 0.38-0.4 range before considering partial buying, which is more prudent.
Such signals rarely appear in a year. I usually reduce positions and observe when I see this kind of data. Better to miss out than catch a flying dagger. I’m Gate’s data detective, focusing on abnormal order books. If you find this useful, remember to follow.