VELVETUSDT Eyes 64% Rally After 68% Recovery as Bulls Defend Key Demand Zone

VELVETUSDT Flashes Bullish Retest Pattern After 68% Recovery From Lows

VELVETUSDT has surged more than 68% off its chart low and now trades less than 2% below the recent high, signaling strong underlying demand rather than rejection. The token is currently retesting a critical demand zone between $0.545 and $0.591, with upside targets at $0.728 and $0.892 if buyers successfully defend this area.

Strong Recovery Points to Aggressive Buyer Interest

The 4-hour chart for VELVETUSDT on MEXC reveals a compelling bullish structure following a sharp recovery from the token's bottom. Price has climbed more than 68% from the chart low and now sits just under 2% below the local high, indicating that buyers have been aggressively accumulating throughout the advance rather than showing hesitation near the top. This type of sustained buying pressure often precedes a continuation move, as it suggests that demand is absorbing supply efficiently at each level.

The rapid ascent has created a clean bullish pullback and retest pattern, with price now returning to a previously established demand zone that served as the launchpad for the initial recovery. The current retest of this area will determine whether the bullish structure remains intact or if sellers regain control. The market has reached a pivotal decision point, and the next few candles will likely set the direction for the coming sessions.

Demand Zone Defines the Bullish Case

The critical level on the VELVET chart is the demand zone spanning $0.545 to $0.591, which represents the area where buyers previously stepped in to halt the decline and initiate the current recovery. This zone now acts as the primary decision point for the trade, as a successful retest and hold of this area would confirm that the bullish structure remains intact and that the recovery has legs. Price is currently hovering near the upper boundary of this zone, and traders are watching for a clean reaction that would validate the bullish thesis.

On the bullish side, a confirmed hold of the demand zone with structure staying intact above the $0.592 level opens the path toward the first target at $0.728. This level represents a logical profit-taking zone where sellers may emerge, but if momentum remains strong, the next target at $0.892 becomes achievable. The distance between the demand zone and these targets provides a favorable risk-reward ratio for traders willing to position on the long side.

Entry ZoneUpside TargetsStop LossInvalidation Level

$0.545 – $0.591

$0.728 (Target 1) – $0.892 (Target 2)

$0.512

Below $0.532

Risk Parameters and Invalidation

Bitcoin (BTC) Bulls Defend $62.1K Demand Zone as Breakout Targets $63.8K

The bearish scenario for VELVETUSDT is clearly defined, with a break below $0.532 serving as the invalidation level for the entire bullish setup. This level sits just beneath the demand zone and represents the point where buyers have failed to defend the structure, potentially triggering a deeper retracement toward the chart lows. The stop-loss placement near $0.512 provides an additional buffer below the invalidation level, giving the trade room to breathe while still maintaining a defined risk parameter.

The heavy vesting schedule for VELVETUSDT, which extends through June 2029, introduces a persistent supply overhang that could cap upside momentum even if the chart pattern holds. Large unlock events have historically created selling pressure in crypto markets, and this extended vesting timeline means that new supply will continue to enter circulation over the coming years. This background risk does not invalidate the bullish setup but does warrant caution when sizing positions and setting profit targets.

Market Structure and Momentum Favor the Bulls

The 4-hour chart shows a clear change of character from the prior downtrend, with price establishing higher lows and higher highs since the bottom. The recovery has been accompanied by increasing volume on up moves, a classic sign that institutional flow is driving the advance rather than retail speculation. The Relative Strength Index sits in the mid-50s, indicating that momentum remains neutral with room to extend higher without triggering overbought conditions.

Order book data across major exchanges shows a dense cluster of buy orders stacked between $0.545 and $0.560, adding technical weight to the demand zone and providing a cushion for price to hold on a retest. However, the same order books reveal a concentration of limit sell orders near the $0.625 and $0.680 levels, representing potential resistance zones that could slow the advance toward the first target.

Final Verdict on the VELVET Setup

The VELVETUSDT setup presents a clear risk-reward profile for traders watching the 4-hour timeframe, with defined entry zones, targets, and invalidation levels. The bullish case hinges on buyers defending the $0.545 to $0.591 demand zone, which would confirm that the recovery structure remains intact and open the path toward the $0.728 target. A break above the recent high would provide additional confirmation, while a move below the invalidation level would shift the narrative entirely in favor of bears.

The heavy vesting schedule remains a background concern, but for now, the chart suggests that buyers remain in control as long as the demand zone holds. The next four to six 4-hour candles will likely determine whether this setup plays out as a successful retest and continuation or a failure that sends price back toward the lows. The clean technical parameters make this a high-probability trade for those willing to respect the defined risk levels.