Markets have a strange habit of punishing certainty. Earlier this month, VELVET was widely dismissed after crashing from its June 11 peak of $1.85 to nearly $0.31, an 83% collapse that left many traders convinced the story was over. Apparently, the market had other ideas.
From Panic Selling To Aggressive Buying
After finding support near $0.31, VELVET price slowly started rebuilding demand. By June 22, the token had quietly climbed back toward the $0.52 region without attracting much attention.
Then June 23 arrived. Selling pressure pushed prices lower once again, but instead of another breakdown, buyers stepped in aggressively. The result was a hammer candle with a low near $0.41, a technical formation many traders associate with demand returning to the market.
Since that low, VELVET has surged toward $1.45, delivering gains of more than 250%.
Derivatives Markets Suddenly Wake Up
The move wasn’t happening quietly under the hood either. Open interest exploded 243%, reaching $170.74 million as traders piled into contracts at an unusually aggressive pace. Meanwhile, derivatives volume jumped 1,090% to $1.27 billion, highlighting just how quickly participation returned. That kind of activity usually leaves casualties behind.
Short Sellers Become Fuel For Rally
Liquidation data showed $2.87 million in positions were wiped out during the move. Out of that figure, $2.51 million came from short positions, suggesting the rally was amplified by a classic short squeeze as bearish bets were forced to close.
The catalyst appeared to be Velvet’s integration with Aerodrome, which introduced improved pricing and lower slippage for users of the platform’s non-custodial trading terminal.
For a token many had already written off just weeks earlier, VELVET price action has delivered a harsh reminder that crypto markets rarely reward consensus for very long.