From $1.92 to $0.30 to wherever-next: VELVET's 84% dip and 385% rebound keep traders on their toes

Velvet ($VELVET), the AI-powered onchain trading and portfolio terminal, announced a partnership with Aerodrome Finance via its official X account, routing Base trades directly through Aerodrome for deeper liquidity and tighter pricing. The news coincided with sharp bullish price action and renewed demand for the token.

In the past 24 hours, $VELVET has rallied 135%, accompanied by a 382% surge in daily trading volume. The move follows an 84% two-day correction that took the altcoin from $1.92 to $0.30. On the 1-day chart, the price briefly slipped below the 78.6% Fibonacci retracement level at $0.483 before reclaiming it as support, a level that subsequently served as the launchpad for the recent rally.

Technical indicators have tracked the recovery. The Awesome Oscillator has climbed higher, signaling continued bullish momentum, while the On-Balance Volume has not fallen far from its earlier June high, indicating that selling pressure remained relatively contained during the drawdown.

$VELVET's volatility has unfolded against a backdrop of losses across the broader crypto market, prompting discussion of the token's relative strength and drawing comparisons to other high-volatility names that have faced price-manipulation allegations. The platform's newly disclosed integration with Aerodrome Finance and the resulting uptick in trading activity have added another data point for market participants weighing the token's near-term trajectory.