Velvet down 75% and traders still buying the dip like it's a BOGO deal 🛒

Velvet [VELVET] has dropped 75% over the past week, with the token shedding another 16% in the last 24 hours as selling pressure has persisted. The slide has not deterred spot and perpetual market participants, who have continued to commit capital to the buy side even as the broader backdrop has turned increasingly negative.

Selling has outweighed buying in Velvet's perpetual market, according to the Taker Buy Sell Ratio, which slipped to 0.95 as of writing. A reading below 1 indicates that sell volume is leading across accounts, though the gap to parity remains narrow. Open interest, which tracks capital allocated to perpetual contracts, has fallen from $29.36 million to $21.07 million, a 28% decline that reflects withdrawals tied to heightened volatility. Total liquidations over the past 24 hours reached $558,320, with long liquidations accounting for $490,520 of that total.

Despite the bearish flow, positioning has remained net long. The Funding Rate for Velvet stood at 0.0050%, a positive print that signals traders are still paying to maintain long exposure. That stance is partly anchored in the token's longer-term performance: Velvet is up 59% over the past 30 days and 533% over the past quarter, the latter figure nearly ten times the monthly gain.

Spot demand has also reinforced the bullish tilt. Weekly net purchases from spot investors totaled $1.58 million, with roughly $781,000 of that arriving in the past 48 hours. That buying has continued even as shorting Velvet has proven more profitable than going long over the past day. CoinGlass provided the derivatives and liquidation data cited above, and the combination of positive funding, sustained spot inflows, and the token's quarterly gains has left market participants positioned for a rebound if the buying trend continues.