VELVET stalls at $2 as capital flees — even the bulls can't keep their volume up 🧵

Velvet [VELVET] slipped 11.5% over the past 24 hours, retreating from a Monday, June 29 push above the $2.0 round-number resistance that briefly took the token to $2.17, according to CoinMarketCap data. Daily trading volume has fallen 27.1% alongside the pullback, leaving VELVET attempting to defend its recent gains after the Aerodrome Finance partnership announcement reignited its uptrend.

The retreat halted at the 20-day moving average around $0.75, a level previously watched as dynamic support during VELVET's sharp June decline from $1.922 to $0.302 in the second week of the month. From that base, the token had rebuilt momentum to local highs near $1.922 before extending to $2.17, with the past three days erasing part of that advance.

Volume indicators pointed in opposite directions. The On-Balance Volume (OBV) continued higher to reflect steady buying pressure, while the Chaikin Money Flow (CMF) sank below -0.05 in recent sessions, with a current reading of -0.17 indicating significant capital outflows. AMBCrypto, which previously covered the bullish catalysts and price structure, also flagged increased volatility around the token.

Open interest was in decline, though the spot Cumulative Volume Delta (CVD) remained steady and funding rates held flat, signaling short-term bearish pressure without confirmation of a deeper trend reversal. Traders were watching whether buyers would attempt to reclaim the $2 support level, with the 20-day moving average at $0.75 cited as a key downside marker should the pullback extend further.