- Velo has broken out of its third falling wedge since 2023, a pattern historically followed by sharp bullish rallies and increased volume.
- A 9-day and 21-day moving average crossover confirms the upward momentum as Velo closes at its highest price since February 2025.
- Technical indicators such as MACD and wick-light candles suggest strong buying interest and rising conviction behind Velo’s current bullish breakout.
VELO is gaining attention as it breaks out from a recurring falling wedge pattern. The price has seen sharp rallies after previous breakouts, fueling optimism for a continued upward move.
Bullish Falling Wedge Pattern Signals Upside
In a recent tweet, crypto analyst JavonTM1 pointed out the significance of a recurring bullish reversal pattern in the price chart of Velo: the falling wedge. The pattern, seen three times since early 2023, is characterised by decreasing support and resistance lines that tighten over time. In the past, Velo has seen upward breakouts with each completion of a falling wedge, suggesting promising price action.
Volume analysis further supports this pattern. During the formation of each wedge, trading volume has consistently declined, signaling a reduction in selling pressure. When the price eventually breaks upward, volume spikes, confirming strong bullish interest and suggesting that the breakout could follow a similar path.
Price Breaks Above Key Down-Channel Resistance
In the latter part of April, Velo witnessed a determined breakout above a significant down-trendline that formed lower highs and lower lows since mid-January. It closed at $0.0149, its highest level since February. This breakout was also confirmed by a cross of the 9-day and 21-day moving averages, where the smaller MA (≈$0.01315) crossed above the longer MA (≈$0.01204). Such a cross is usually a sign of sustained upwards momentum.
The breakout is supported by the MACD indicator, which has climbed above its signal line, showing increasing bullish strength. A positive histogram has also expanded, further confirming the growing momentum behind the price move. Sharp, wick-light candles during the breakout suggest aggressive buying, with traders now focusing on the possibility of a bullish shift in control.
Targets and Next Steps for Velo’s Price
The price of Velo stands at $0.01504 during writing, with a 6.65% gain over the past 24 hours and a 27.66% growth over the past week. The next level of resistance lies at $0.0170, with the previous channel top at $0.0155 hindering an immediate breakthrough.
If Velo holds above this broken resistance line, it may test higher levels. However, a drop below $0.0135 could signal a false breakout, potentially leading to a retest of the channel’s upper boundary.
