VELVET Price Prediction Targets $1.50 After a 359% Surge

• VELVET could revisit $1.50 if buyers secure a sustained close above $0.86 resistance.
• Open interest near $240 million amplifies momentum while increasing liquidation risk.
• Three wallets control 73.4% of the supply, leaving the price exposed to concentrated selling.

VELVET surged 359.01% on June 29 as open interest approached $240 million, and three wallets controlled 73.4% of the supply. The move placed its breakout beside record leverage, concentrated ownership, and earlier price rejections. The token opened at $0.18707, which also marked the daily low, before closing at the session high of $0.85867. 

VELVET Tests Its First Major Resistance

A TradingView chart for VELVET/USDT on Poloniex shows buyers controlled the June 29 session. The close near $0.86 placed the token directly against its first immediate resistance level. Earlier in June, VELVET climbed from about $0.10 toward $0.50 before breaking above $1.40. Price then printed a long upper wick near $2.35 and quickly fell below $0.50.

A second rally reached roughly $2.20 before another steep rejection sent the token toward $0.18. That level later became the chart’s clearest short-term support during several quieter sessions. The price outlook now rests on the $0.86 area. A sustained daily close above it could reopen $1.40 to $1.50, while rejection could expose $0.50 and $0.18 again.

Momentum has improved without reaching an overheated level. The 14-day Relative Strength Index stands at 56.96, above its 51.16 average, while repeated upper wicks show selling pressure at higher prices.

Open Interest Climbs Toward $240 Million

CoinGlass data shows VELVET open interest approaching $240 million by June 28, the highest level on the displayed chart. Price also accelerated toward $1.90 before the later close near $0.86. From January through May, open interest generally stayed below $20 million. VELVET traded near the chart’s lower range and fell toward $0.06 during February.

Activity changed around June 12, when open interest briefly reached about $150 million, and price climbed above $1.50. Both measures later retreated as VELVET returned toward $0.30 to $0.50. Open interest then declined toward roughly $35 million to $55 million, although it remained above earlier yearly levels. By late June, the metric had exceeded its first spike.

Rising prices and open interest show that traders added leveraged exposure during the advance. This expansion also increases liquidation risk because a reversal could accelerate movement in either direction.

Related: CFTC Sues Three States Over Prediction Market Authority

Three Wallets Control 73.4% of Supply

Market analyst Nehal shared an Arkham dashboard on X showing heavy concentration among VELVET’s largest holders. Nehal wrote, “Top 3 wallets control 73%+ of supply.” The dashboard lists a Sablier-linked wallet with 471.66 million VELVET, equal to 46.83% of supply. It valued the position at $820.7 million.

Two Gnosis Safe wallets held 160.32 million and 107.27 million tokens, representing 15.92% and 10.65%, respectively. Together, the three addresses controlled about 73.4%. Other visible wallets held 35 million, 33.63 million, and 23.11 million VELVET. Exchange-linked balances included 20.37 million at Bitget, 17.63 million at Gate, and 9.81 million at KuCoin.

Nehal also wrote, “One wallet alone holds 46.8% ($820M+),” and warned that whale activity could heavily affect price. Still, wallet concentration does not confirm imminent selling. Some large addresses may represent vesting contracts, treasury reserves, custodial accounts, or exchange balances rather than discretionary whale positions.