Velo price prediction: Can it reach $0.0288 or break higher?

Overview

Velo has emerged as one of the more strong assets during recent market turbulence. Despite sell-offs in major cryptocurrencies, Velo has shown significant strength, particularly on the weekly timeframe, where it has shifted its market structure to a bullish outlook. With strong whale accumulation and support at key levels, Velo seems to be presenting itself as a promising altcoin for the upcoming cycle.

Wider market structure: weekly timeframe analysis :

On the weekly chart, Velo has demonstrated substantial strength, exhibiting multiple bullish movements in 2023. The first significant rally began in February 2023, where Velo bounced from $0.002 and surged by 550% to $0.0145 in just three weeks. This rally reflected a strong accumulation phase, likely driven by whales, marking the start of Velo's potential shift in market structure.

After this impressive rally, Velo retraced back to its accumulation zone between $0.002 - $0.003, where it consolidated for over 230 days inside the demand zone. This long consolidation period showed resilience, as price remained within this base zone, gathering strength. Eventually, Velo moved upwards, breaking through its previous high of $0.0145 and pushing to a new local high of $0.0288.

This surge marked a 1500%+ move from the bottom of its accumulation base to the new high, confirming the market structure shift to the upside on the weekly chart. The rally left behind a second demand zone between $0.005 - $0.0075, where Velo found strong buying interest during pullbacks. Velo has tested this zone twice and bounced back, currently trading 140%+ from the new higher low at $0.007.

Key observations:

Accumulation zones

First zone from $0.002 - $0.003 (230+ days). Second zone from $0.005 - $0.0075, which acted as a strong demand zone.

Key higher highs

The shift in market structure was confirmed after the second rally broke through $0.0145, pushing the price to a new high at $0.0288.

Demand zone strength

The second demand zone between $0.005 - $0.0075 was tested twice, demonstrating strong support before price continued moving upwards.

Current trading position

Velo is currently trading 140%+ from its new higher low at $0.007, maintaining its bullish structure on the weekly chart.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Current market structure and outlook

Velo's current market structure has shown consistent bullish momentum, with price movements following a clear uptrend. After creating a new local high at $0.028, Velo retraced in a wedge formation to its second demand zone between $0.005 - $0.0075. Upon reaching the bottom of the wedge and tapping this demand zone, Velo reacted with an impulsive move, breaking out of the wedge and rallying 60% to $0.012, where it met resistance.

Velo then retraced back to its demand zone once again, but quickly bounced back, breaking through the $0.012 resistance and now trading near the next key resistance level at $0.015. If the broader market stabilizes and avoids further sell-offs, Velo is well-positioned to make another higher high above $0.0288 in the medium term.

Key levels and DCA zones for accumulation:

• Current accumulation levels
• The $0.012 zone, now flipped into strong support, presents a solid DCA opportunity. This area is highlighted as a key accumulation zone for long-term holders.
• Additional accumulation zones
• If $0.012 does not hold, the second demand zone between $0.005 - $0.0075 remains an attractive zone for long-term accumulation, representing the origin of the previous rally.
• Upside resistance
• Velo faces short-term resistance at $0.015 and $0.0288. A break above these levels could trigger another rally, potentially leading to new highs.

Key insights:

• Support zone strength:
• The $0.012 zone has been tested and held, flipping into support, while the $0.005 - $0.0075 demand zone remains a solid area for final DCA accumulation.
• Bullish continuation potential:
• A break above $0.015 could signal further upside potential, with targets at $0.067 million and $0.106 million in the medium term.
• Wider market impact:
• Should the broader market stabilize, Velo looks primed to continue its bullish trajectory and potentially create new highs in the upcoming months.

Cryptonary's take

Velo stands out as a promising altcoin amidst a broader market retracement. The asset has demonstrated resilience at key support levels, showing strong accumulation and demand in significant zones. Its price movements continue to reflect strength, particularly with the recent wedge breakout and sustained bullish structure on the weekly chart.

While the $0.012 zone remains a key area for accumulation, investors should also monitor the second demand zone between $0.005 - $0.0075, which has historically provided strong support. As the wider market cools, Velo is an asset to keep on the radar for those seeking opportunities in altcoins showing strength rather than weakness.

However, it's crucial to approach any investment in Velo with caution. As with any altcoin, volatility remains a significant factor, and maintaining strategic DCA entries at key levels will be essential for managing risk.